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Rehabilitation Act of 1973 (As Amended Through 1998)

(1) millions of
Americans have one or more physical or mental disabilities and the number of
Americans with such disabilities is increasing;

(2) individuals
with disabilities constitute one of the most disadvantaged groups in society;

(3) disability
is a natural part of the human experience and in no way diminishes the right
of individuals to-

(A) live independently;

(B) enjoy self-determination;

(C) make choices;

(D) contribute to society;

(E) pursue meaningful careers; and

(F) enjoy full inclusion and integration in the economic, political,
social, cultural, and educational mainstream of American society;

(4) increased employment
of individuals with disabilities can be achieved through implementation of statewide
workforce investment systems under title I of the Workforce Investment Act of
1998 that provide meaningful and effective participation for individuals with
disabilities in workforce investment activities and activities carried out under
the vocational rehabilitation program established under title I, and through
the provision of independent living services, support services, and meaningful
opportunities for employment in integrated work settings through the provision
of reasonable accommodations;

(5) individuals
with disabilities continually encounter various forms of discrimination in such
critical areas as employment, housing, public accommodations, education, transportation,
communication, recreation, institutionalization, health services, voting, and
public services; and

(6) the goals of
the Nation properly include the goal of providing individuals with disabilities
with the tools necessary to-

(A) make informed choices and decisions; and

(B) achieve equality of opportunity, full inclusion and integration
in society, employment, independent living, and economic and social self-sufficiency,
for such individuals.

(b)Purpose

The purposes of this Act
are-

(1) to empower
individuals with disabilities to maximize employment, economic self-sufficiency,
independence, and inclusion and integration into society, through-

(A) statewide workforce investment systems implemented in accordance
with title I of the Workforce Investment Act of 1998 that include, as integral
components, comprehensive and coordinated state-of-the-art programs of vocational
rehabilitation;

(B) independent living centers and services;

(C) research;

(D) training;

(E) demonstration projects; and

(F) the guarantee of equal opportunity; and

(2) to ensure that
the Federal Government plays a leadership role in promoting the employment of
individuals with disabilities, especially individuals with significant disabilities,
and in assisting States and providers of services in fulfilling the aspirations
of such individuals with disabilities for meaningful and gainful employment
and independent living.

(c)Policy

It is the policy of the
United States that all programs, projects, and activities receiving assistance
under this Act shall be carried out in a manner consistent with the principles
of-

(1) respect for
individual dignity, personal responsibility, self-determination, and pursuit
of meaningful careers, based on informed choice, of individuals with disabilities;

(2) respect for
the privacy, rights, and equal access (including the use of accessible formats),
of the individuals;

(3) inclusion,
integration, and full participation of the individuals;

(4) support for
the involvement of an individual's representative if an individual with a disability
requests, desires, or needs such support; and

(5) support for individual and systemic advocacy and community involvement.

REHABILITATION SERVICES ADMINISTRATION

Sec. 3. (a) There
is established in the Office of the Secretary a Rehabilitation Services Administration
which shall be headed by a Commissioner (hereinafter in this Act referred to
as the "Commissioner") appointed by the President by and with the
advice and consent of the Senate. Except for titles IV and V and as otherwise
specifically provided in this Act, such Administration shall be the principal
agency, and the Commissioner shall be the principal officer, of such Department
for carrying out this Act. The Commissioner shall be an individual with substantial
experience in rehabilitation and in rehabilitation program management. In the
performance of the functions of the office, the Commissioner shall be directly
responsible to the Secretary or to the Under Secretary or an appropriate Assistant
Secretary of such Department, as designated by the Secretary. The functions
of the Commissioner shall not be delegated to any officer not directly responsible,
both with respect to program operation and administration, to the Commissioner.
Any reference in this Act to duties to be carried out by the Commissioner shall
be considered to be a reference to duties to be carried out by the Secretary
acting through the Commissioner. In carrying out any of the functions of the
office under this Act, the Commissioner shall be guided by general policies
of the National Council on Disability established under title IV of this Act.

(b) The Secretary
shall take whatever action is necessary to ensure that funds appropriated pursuant
to this Act are expended only for the programs, personnel, and administration
of programs carried out under this Act.

ADVANCE FUNDING

Sec. 4. (a) For
the purpose of affording adequate notice of funding available under this Act,
appropriations under this Act are authorized to be included in the appropriation
Act for the fiscal year preceding the fiscal year for which they are available
for obligation.

(b) In order to
effect a transition to the advance funding method of timing appropriation action,
the authority provided by subsection (a) of this section shall apply notwithstanding
that its initial application will result in the enactment in the same year (whether
in the same appropriation Act or otherwise) of two separate appropriations,
one for the then current fiscal year and one for the succeeding fiscal year.

JOINT FUNDING

Sec. 5. Pursuant
to regulations prescribed by the President, and to the extent consistent with
the other provisions of this Act, where funds are provided for a single project
by more than one Federal agency to an agency or organization assisted under
this Act, the Federal agency principally involved may be designated to act for
all in administering the funds provided, and, in such cases, a single non-Federal
share requirement may be established according to the proportion of funds advanced
by each agency. When the principal agency involved is the Rehabilitation Services
Administration, it may waive any grant or contract requirement (as defined by
such regulations) under or pursuant to any law other than this Act, which requirement
is inconsistent with the similar requirements of the administering agency under
or pursuant to this Act.

DEFINITIONS

Sec. 7. For the
purposes of this Act:

(1)Administrative
costs

The term "administrative
costs" means expenditures incurred in the performance of administrative
functions under the vocational rehabilitation program carried out under title
I, including expenses related to program planning, development, monitoring,
and evaluation, including expenses for-

(D) technical assistance
and support services to other State agencies, private nonprofit organizations,
and businesses and industries, except for technical assistance and support services
described in section 103(b)(5);

(E) the State Rehabilitation
Council and other advisory committees;

(F) professional
organization membership dues for designated State unit employees;

(G) the removal
of architectural barriers in State vocational rehabilitation agency offices
and State operated rehabilitation facilities;

(J) administration
of the comprehensive system of personnel development described in section 101(a)(7),
including personnel administration, administration of affirmative action plans,
and training and staff development;

(K) administrative
salaries, including clerical and other support staff salaries, in support of
these administrative functions;

(L) travel costs
related to carrying out the program, other than travel costs related to the
provision of services;

(M) costs incurred
in conducting reviews of rehabilitation counselor or coordinator determinations
under section 102(c); and

The term "assessment
for determining eligibility and vocational rehabilitation needs" means,
as appropriate in each case-

(A)(i) a review of existing data-

(I) to determine whether an individual is eligible for vocational
rehabilitation services; and

(II) to assign priority for an order of selection described in section
101(a)(5)(A) in the States that use an order of selection pursuant to section
101(a)(5)(A); and

(ii) to the extent necessary, the provision of appropriate assessment
activities to obtain necessary additional data to make such determination
and assignment;

(B) to the extent additional data is necessary to make a determination
of the employment outcomes, and the objectives, nature, and scope of vocational
rehabilitation services, to be included in the individualized plan for employment
of an eligible individual, a comprehensive assessment to determine the unique
strengths, resources, priorities, concerns, abilities, capabilities, interests,
and informed choice, including the need for supported employment, of the eligible
individual, which comprehensive assessment-

(i) is limited to information that is necessary to identify the
rehabilitation needs of the individual and to develop the individualized
plan for employment of the eligible individual;

(ii) uses, as a primary source of such information, to the maximum
extent possible and appropriate and in accordance with confidentiality requirements-

(I) existing information obtained for the purposes of determining
the eligibility of the individual and assigning priority for an order of
selection described in section 101(a)(5)(A) for the individual; and

(II) such information as can be provided by the individual and,
where appropriate, by the family of the individual;

(iii) may include, to the degree needed to make such a determination,
an assessment of the personality, interests, interpersonal skills, intelligence
and related functional capacities, educational achievements, work experience,
vocational aptitudes, personal and social adjustments, and employment opportunities
of the individual, and the medical, psychiatric, psychological, and other
pertinent vocational, educational, cultural, social, recreational, and environmental
factors, that affect the employment and rehabilitation needs of the individual;
and

(iv) may include, to the degree needed, an appraisal of the patterns
of work behavior of the individual and services needed for the individual
to acquire occupational skills, and to develop work attitudes, work habits,
work tolerance, and social and behavior patterns necessary for successful
job performance, including the utilization of work in real job situations
to assess and develop the capacities of the individual to perform adequately
in a work environment;

(C) referral, for the provision of rehabilitation technology services
to the individual, to assess and develop the capacities of the individual
to perform in a work environment; and

(D) an exploration of the individual's abilities, capabilities, and
capacity to perform in work situations, which shall be assessed periodically
during trial work experiences, including experiences in which the individual
is provided appropriate supports and training.

(3)Assistive
technology device

The term "assistive
technology device" has the meaning given such term in section 3(2) of the
Technology-Related Assistance for Individuals With Disabilities Act of 1988
(29 U.S.C. 2202(2)), except that the reference in such section to the term "individuals
with disabilities" shall be deemed to mean more than one individual with
a disability as defined in paragraph (20)(A).

(4)Assistive
technology service

The term "assistive
technology service" has the meaning given such term in section 3(3) of
the Technology-Related Assistance for Individuals With Disabilities Act of 1988
(29 U.S.C. 2202(3)), except that the reference in such section-

(A) to the term "individual with a disability" shall be
deemed to mean an individual with a disability, as defined in paragraph (20)(A);
and

(B) to the term "individuals with disabilities" shall be
deemed to mean more than one such individual.

(5)Community
rehabilitation program

The term "community
rehabilitation program" means a program that provides directly or facilitates
the provision of vocational rehabilitation services to individuals with disabilities,
and that provides, singly or in combination, for an individual with a disability
to enable the individual to maximize opportunities for employment, including
career advancement-

(A) medical, psychiatric, psychological, social, and vocational services
that are provided under one management;

(B) testing, fitting, or training in the use of prosthetic and orthotic
devices;

(C) recreational therapy;

(D) physical and occupational therapy;

(E) speech, language, and hearing therapy;

(F) psychiatric, psychological, and social services, including positive
behavior management;

(O) services to family members when necessary to the vocational rehabilitation
of the individual;

(P) personal assistance services; or

(Q) services similar to the services described in one of subparagraphs
(A) through (P).

(6)Construction; cost of construction

(A)Construction

The term "construction" means-

(i) the construction of new buildings;

(ii) the acquisition, expansion, remodeling, alteration, and renovation
of existing buildings; and

(iii) initial equipment of buildings described in clauses (i) and
(ii).

(B)Cost of construction

The term "cost of
construction" includes architects' fees and the cost of acquisition of
land in connection with construction but does not include the cost of offsite
improvements.

(7)Criminal
act

The term "criminal
act" means any crime, including an act, omission, or possession under the
laws of the United States or a State or unit of general local government, which
poses a substantial threat of personal injury, notwithstanding that by reason
of age, insanity, or intoxication or otherwise the person engaging in the act,
omission, or possession was legally incapable of committing a crime.

(8)Designated
state agency; designated state unit

(A)Designated state agency

The term "designated State agency" means an agency designated under
section 101(a)(2)(A).

(B)Designated state unit

The term "designated State unit" means-

(i) any State agency unit required under section 101(a)(2)(B)(ii);
or

(ii) in cases in which no such unit is so required, the State agency
described in section 101(a)(2)(B)(i).

(9)Disability

The term "disability"
means-

(A) except as otherwise provided in subparagraph (B), a physical or
mental impairment that constitutes or results in a substantial impediment
to employment; or

(B) for purposes of sections 2, 14, and 15, and titles II, IV, V,
and VII, a physical or mental impairment that substantially limits one or
more major life activities.

(10)Drug and
illegal use of drugs

(A)Drug

The term "drug" means a controlled substance, as defined in schedules
I through V of section 202 of the Controlled Substances Act (21 U.S.C. 812).

(B)Illegal use of drugs

The term "illegal use of drugs" means the use of drugs, the possession
or distribution of which is unlawful under the Controlled Substances Act.
Such term does not include the use of a drug taken under supervision by a
licensed health care professional, or other uses authorized by the Controlled
Substances Act or other provisions of Federal law.

(C) satisfying any other vocational outcome the Secretary may determine
to be appropriate (including satisfying the vocational outcome of self-employment,
telecommuting, or business ownership), in a manner consistent with this Act.

(12)Establishment
of a community rehabilitation program

The term "establishment
of a community rehabilitation program" includes the acquisition, expansion,
remodeling, or alteration of existing buildings necessary to adapt them to community
rehabilitation program purposes or to increase their effectiveness for such
purposes (subject, however, to such limitations as the Secretary may determine,
in accordance with regulations the Secretary shall prescribe, in order to prevent
impairment of the objectives of, or duplication of, other Federal laws providing
Federal assistance in the construction of facilities for community rehabilitation
programs), and may include such additional equipment and staffing as the Commissioner
considers appropriate.

(13)Extended
services

The term "extended
services" means ongoing support services and other appropriate services,
needed to support and maintain an individual with a most significant disability
in supported employment, that-

(A) are provided singly or in combination and are organized and made
available in such a way as to assist an eligible individual in maintaining
supported employment;

(B) are based on a determination of the needs of an eligible individual,
as specified in an individualized plan for employment; and

(C) are provided by a State agency, a nonprofit private organization,
employer, or any other appropriate resource, after an individual has made
the transition from support provided by the designated State unit.

The term "Federal share" means the share specifically set forth
in section 111(a)(3), except that with respect to payments pursuant to part
B of title I to any State that are used to meet the costs of construction
of those rehabilitation facilities identified in section 103(b)(2) in such
State, the Federal share shall be the percentages determined in accordance
with the provisions of section 111(a)(3) applicable with respect to the State.

(C)Relationship to expenditures by a political subdivision

For the purpose of determining the non-Federal share with respect to a State,
expenditures by a political subdivision thereof or by a local agency shall
be regarded as expenditures by such State, subject to such limitations and
conditions as the Secretary shall by regulation prescribe.

(15)Governor

The term "Governor"
means a chief executive officer of a State.

(16)Impartial
hearing officer

(A)In general

The term "impartial hearing officer" means an individual-

(i) who is not an employee of a public agency (other than an administrative
law judge, hearing examiner, or employee of an institution of higher education);

(ii) who is not a member of the State Rehabilitation Council described
in section 105;

(iii) who has not been involved previously in the vocational rehabilitation
of the applicant or client;

(iv) who has knowledge of the delivery of vocational rehabilitation
services, the State plan under section 101, and the Federal and State rules
governing the provision of such services and training with respect to the
performance of official duties; and

(v) who has no personal or financial interest that would be in conflict
with the objectivity of the individual.

(B)Construction

An individual shall not be considered to be an employee of a public agency
for purposes of subparagraph (A)(i) solely because the individual is paid
by the agency to serve as a hearing officer.

(ii) services related to securing housing or shelter, including
services related to community group living, and supportive of the purposes
of this Act and of the titles of this Act, and adaptive housing services
(including appropriate accommodations to and modifications of any space
used to serve, or occupied by, individuals with disabilities);

(iii) rehabilitation technology;

(iv) mobility training;

(v) services and training for individuals with cognitive and sensory
disabilities, including life skills training, and interpreter and reader
services;

(vi) personal assistance services, including attendant care and
the training of personnel providing such services;

(vii) surveys, directories, and other activities to identify appropriate
housing, recreation opportunities, and accessible transportation, and other
support services;

(viii) consumer information programs on rehabilitation and independent
living services available under this Act, especially for minorities and
other individuals with disabilities who have traditionally been unserved
or underserved by programs under this Act;

(ix) education and training necessary for living in a community
and participating in community activities;

(x) supported living;

(xi) transportation, including referral and assistance for such
transportation and training in the use of public transportation vehicles
and systems;

(xii) physical rehabilitation;

(xiii) therapeutic treatment;

(xiv) provision of needed prostheses and other appliances and devices;

(xv) individual and group social and recreational services;

(xvi) training to develop skills specifically designed for youths
who are individuals with disabilities to promote self-awareness and esteem,
develop advocacy and self-empowerment skills, and explore career options;

(xvii) services for children;

(xviii) services under other Federal, State, or local programs designed
to provide resources, training, counseling, or other assistance, of substantial
benefit in enhancing the independence, productivity, and quality of life
of individuals with disabilities;

(xix) appropriate preventive services to decrease the need of individuals
assisted under this Act for similar services in the future;

(xx) community awareness programs to enhance the understanding and
integration into society of individuals with disabilities; and

(xxi) such other services as may be necessary and not inconsistent
with the provisions of this Act.

(19)Indian;
american indian; indian american; indian tribe

(A)In general

The terms "Indian", "American Indian", and "Indian
American" mean an individual who is a member of an Indian tribe.

(B)Indian tribe

The term "Indian tribe" means any Federal or State Indian tribe,
band, rancheria, pueblo, colony, or community, including any Alaskan native
village or regional village corporation (as defined in or established pursuant
to the Alaska Native Claims Settlement Act).

(20)Individual
with a disability

(A)In general

Except as otherwise provided in subparagraph (B), the term "individual
with a disability" means any individual who-

(i) has a physical or mental impairment which for such individual
constitutes or results in a substantial impediment to employment; and

(ii) can benefit in terms of an employment outcome from vocational
rehabilitation services provided pursuant to title I, III, or VI.

(B)Certain programs; limitations on major life activities

Subject to subparagraphs (C), (D), (E), and (F), the term "individual
with a disability" means, for purposes of sections 2, 14, and 15, and
titles II, IV, V, and VII of this Act, any person who-

(i) has a physical or mental impairment which substantially limits
one or more of such person's major life activities;

(ii) has a record of such an impairment; or

(iii) is regarded as having such an impairment.

(C)Rights and advocacy provisions

(i)In general; exclusion of individuals engaging in drug use

For purposes of title V, the term "individual with a disability"
does not include an individual who is currently engaging in the illegal
use of drugs, when a covered entity acts on the basis of such use.

(ii)Exception for individuals no longer engaging in drug use

Nothing in clause (i) shall be construed to exclude as an individual with
a disability an individual who-

(I) has successfully completed a supervised drug rehabilitation
program and is no longer engaging in the illegal use of drugs, or has otherwise
been rehabilitated successfully and is no longer engaging in such use;

(II) is participating in a supervised rehabilitation program and
is no longer engaging in such use; or

(III) is erroneously regarded as engaging in such use, but is not
engaging in such use; except that it shall not be a violation of this Act
for a covered entity to adopt or administer reasonable policies or procedures,
including but not limited to drug testing, designed to ensure that an individual
described in subclause (I) or (II) is no longer engaging in the illegal
use of drugs.

(iii)Exclusion for certain services

Notwithstanding clause (i), for purposes of programs and activities providing
health services and services provided under titles I, II, and III, an individual
shall not be excluded from the benefits of such programs or activities on
the basis of his or her current illegal use of drugs if he or she is otherwise
entitled to such services.

(iv)Disciplinary action

For purposes of programs and activities providing educational services,
local educational agencies may take disciplinary action pertaining to the
use or possession of illegal drugs or alcohol against any student who is
an individual with a disability and who currently is engaging in the illegal
use of drugs or in the use of alcohol to the same extent that such disciplinary
action is taken against students who are not individuals with disabilities.
Furthermore, the due process procedures at section 104.36 of title 34, Code
of Federal Regulations (or any corresponding similar regulation or ruling)
shall not apply to such disciplinary actions.

(v)Employment; exclusion of alcoholics

For purposes of sections 503 and 504 as such sections relate to employment,
the term "individual with a disability" does not include any individual
who is an alcoholic whose current use of alcohol prevents such individual
from performing the duties of the job in question or whose employment, by
reason of such current alcohol abuse, would constitute a direct threat to
property or the safety of others.

(D)Employment; exclusion of individuals with certain diseases
or infections

For the purposes of sections 503 and 504, as such sections relate to employment,
such term does not include an individual who has a currently contagious disease
or infection and who, by reason of such disease or infection, would constitute
a direct threat to the health or safety of other individuals or who, by reason
of the currently contagious disease or infection, is unable to perform the
duties of the job.

(E)Rights provisions; exclusion of individuals on basis of homosexuality
or bisexuality

For the purposes of sections 501, 503, and 504-

(i) for purposes of the application of subparagraph (B) to such
sections, the term "impairment" does not include homosexuality
or bisexuality; and

(ii) therefore the term "individual with a disability"
does not include an individual on the basis of homosexuality or bisexuality.

(F)Rights provisions; exclusion of individuals on basis of certain
disorders

For the purposes of sections 501, 503, and 504, the term "individual
with a disability" does not include an individual on the basis of-

(iii) psychoactive substance use disorders resulting from current
illegal use of drugs.

(G)Individuals with disabilities

The term "individuals with disabilities" means more than one individual
with a disability.

(21)Individual
with a significant disability

(A)In general

Except as provided in subparagraph (B) or (C), the term "individual
with a significant disability" means an individual with a disability-

(i) who has a severe physical or mental impairment which seriously
limits one or more functional capacities (such as mobility, communication,
self-care, self-direction, interpersonal skills, work tolerance, or work
skills) in terms of an employment outcome;

(ii) whose vocational rehabilitation can be expected to require
multiple vocational rehabilitation services over an extended period of time;
and

For purposes of title VII, the term "individual with a significant disability"
means an individual with a severe physical or mental impairment whose ability
to function independently in the family or community or whose ability to obtain,
maintain, or advance in employment is substantially limited and for whom the
delivery of independent living services will improve the ability to function,
continue functioning, or move towards functioning independently in the family
or community or to continue in employment, respectively.

(C)Research and training

For purposes of title II, the term "individual with a significant disability"
includes an individual described in subparagraph (A) or (B).

(D)Individuals with significant disabilities

The term "individuals with significant disabilities" means more
than one individual with a significant disability.

(E)Individual with a most significant disability

(i)In general

The term "individual with a most significant disability", used
with respect to an individual in a State, means an individual with a significant
disability who meets criteria established by the State under section 101(a)(5)(C).

(ii)Individuals with the most significant disabilities

The term "individuals with the most significant disabilities"
means more than one individual with a most significant disability.

(22)Individual's
representative; applicant's representative

The terms "individual's
representative" and "applicant's representative" mean a parent,
a family member, a guardian, an advocate, or an authorized representative of
an individual or applicant, respectively.

(23)Institution
of higher education

The term "institution
of higher education" has the meaning given the term in section 1201(a)
of the Higher Education Act of 1965 (20 U.S.C. 1141(a)).

(24) Local agency

The term "local agency"
means an agency of a unit of general local government or of an Indian tribe
(or combination of such units or tribes) which has an agreement with the designated
State agency to conduct a vocational rehabilitation program under the supervision
of such State agency in accordance with the State plan approved under section
101. Nothing in the preceding sentence of this paragraph or in section 101 shall
be construed to prevent the local agency from arranging to utilize another local
public or nonprofit agency to provide vocational rehabilitation services if
such an arrangement is made part of the agreement specified in this paragraph.

(25)Local workforce
investment board

The term "local workforce
investment board" means a local workforce investment board established
under section 117 of the Workforce Investment Act of 1998.

(26)Nonprofit

The term "nonprofit",
when used with respect to a community rehabilitation program, means a community
rehabilitation program carried out by a corporation or association, no part
of the net earnings of which inures, or may lawfully inure, to the benefit of
any private shareholder or individual and the income of which is exempt from
taxation under section 501(c)(3) of the Internal Revenue Code of 1986.

(27)Ongoing
support services

The term "ongoing
support services" means services-

(A) provided to individuals with the most significant disabilities;

(B) provided, at a minimum, twice monthly-

(i) to make an assessment, regarding the employment situation, at
the worksite of each such individual in supported employment, or, under
special circumstances, especially at the request of the client, off site;
and

(ii) based on the assessment, to provide for the coordination or
provision of specific intensive services, at or away from the worksite,
that are needed to maintain employment stability; and

(C) consisting of-

(i) a particularized assessment supplementary to the comprehensive
assessment described in paragraph (2)(B);

(ii) the provision of skilled job trainers who accompany the individual
for intensive job skill training at the worksite;

(iii) job development, job retention, and placement services;

(iv) social skills training;

(v) regular observation or supervision of the individual;

(vi) followup services such as regular contact with the employers,
the individuals, the individuals' representatives, and other appropriate
individuals, in order to reinforce and stabilize the job placement;

(vii) facilitation of natural supports at the worksite;

(viii) any other service identified in section 103; or

(ix) a service similar to another service described in this subparagraph.

(28)Personal
assistance services

The term "personal
assistance services" means a range of services, provided by one or more
persons, designed to assist an individual with a disability to perform daily
living activities on or off the job that the individual would typically perform
if the individual did not have a disability. Such services shall be designed
to increase the individual's control in life and ability to perform everyday
activities on or off the job.

(29)Public
or nonprofit

The term "public or
nonprofit", used with respect to an agency or organization, includes an
Indian tribe.

(30)Rehabilitation
technology

The term "rehabilitation
technology" means the systematic application of technologies, engineering
methodologies, or scientific principles to meet the needs of and address the
barriers confronted by individuals with disabilities in areas which include
education, rehabilitation, employment, transportation, independent living, and
recreation. The term includes rehabilitation engineering, assistive technology
devices, and assistive technology services.

(31)Secretary

The term "Secretary",
except when the context otherwise requires, means the Secretary of Education.

(32)State

The term "State"
includes, in addition to each of the several States of the United States, the
District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin
Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana
Islands.

(33)State workforce
investment board

The term "State workforce
investment board" means a State workforce investment board established
under section 111 of the Workforce Investment Act of 1998.

(34)Statewide
workforce investment system

The term "statewide
workforce investment system" means a system described in section 111(d)(2)
of the Workforce Investment Act of 1998.

(35)Supported
employment

(A)In general

The term "supported employment" means competitive work in integrated
work settings, or employment in integrated work settings in which individuals
are working toward competitive work, consistent with the strengths, resources,
priorities, concerns, abilities, capabilities, interests, and informed choice
of the individuals, for individuals with the most significant disabilities-

(i)(I) for whom competitive employment has not traditionally occurred;
or

(II) for whom competitive employment has been interrupted or intermittent
as a result of a significant disability; and

(ii) who, because of the nature and severity of their disability,
need intensive supported employment services for the period, and any extension,
described in paragraph (36)(C) and extended services after the transition
described in paragraph (13)(C) in order to perform such work.

(B)Certain transitional employment

Such term includes transitional employment for persons who are individuals
with the most significant disabilities due to mental illness.

(36)Supported
employment services

The term "supported
employment services" means ongoing support services and other appropriate
services needed to support and maintain an individual with a most significant
disability in supported employment, that-

(A) are provided singly or in combination and are organized and made
available in such a way as to assist an eligible individual to achieve competitive
employment;

(B) are based on a determination of the needs of an eligible individual,
as specified in an individualized plan for employment; and

(C) are provided by the designated State unit for a period of time
not to extend beyond 18 months, unless under special circumstances the eligible
individual and the rehabilitation counselor or coordinator involved jointly
agree to extend the time in order to achieve the rehabilitation objectives
identified in the individualized plan for employment.

(37)Transition
services

The term "transition
services" means a coordinated set of activities for a student, designed
within an outcome-oriented process, that promotes movement from school to post
school activities, including postsecondary education, vocational training, integrated
employment (including supported employment), continuing and adult education,
adult services, independent living, or community participation. The coordinated
set of activities shall be based upon the individual student's needs, taking
into account the student's preferences and interests, and shall include instruction,
community experiences, the development of employment and other post school adult
living objectives, and, when appropriate, acquisition of daily living skills
and functional vocational evaluation.

(38)Vocational
rehabilitation services

The term "vocational
rehabilitation services" means those services identified in section 103
which are provided to individuals with disabilities under this Act.

(39)Workforce
investment activities

The term "workforce
investment activities" means workforce investment activities, as defined
in section 101 of the Workforce Investment Act of 1998, that are carried out
under that Act.

ALLOTMENT PERCENTAGE

Sec. 8. (a)(1) For
purposes of section 110, the allotment percentage for any State shall be 100
per centum less that percentage which bears the same ratio to 50 per centum
as the per capita income of such State bears to the per capita income of the
United States, except that-

(A) the allotment
percentage shall in no case be more than 75 per centum or less than 33 1/3 per
centum; and

(B) the allotment
percentage for the District of Columbia, Puerto Rico, Guam, the Virgin Islands,
American Samoa, and the Commonwealth of the Northern Mariana Islands shall be
75 per centum.

(2) The allotment
percentages shall be promulgated by the Secretary between October 1 and December
31 of each even-numbered year, on the basis of the average of the per capita
incomes of the States and of the United States for the three most recent consecutive
years for which satisfactory data are available from the Department of Commerce.
Such promulgation shall be conclusive for each of the two fiscal years in the
period beginning on the October 1 next succeeding such promulgation.

(3) The term "United
States" means (but only for purposes of this subsection) the fifty States
and the District of Columbia.

(b) The population
of the several States and of the United States shall be determined on the basis
of the most recent data available, to be furnished by the Department of Commerce
by October 1 of the year preceding the fiscal year for which funds are appropriated
pursuant to statutory authorizations.

NONDUPLICATION

Sec. 10. In determining
the amount of any State's Federal share of expenditures for planning, administration,
and services incurred by it under a State plan approved in accordance with section
101, there shall be disregarded (1) any portion of such expenditures which are
financed by Federal funds provided under any other provision of law, and (2)
the amount of any non-Federal funds required to be expended as a condition of
receipt of such Federal funds. No payment may be made from funds provided under
one provision of this Act relating to any cost with respect to which any payment
is made under any other provision of this Act, except that this section shall
not be construed to limit or reduce fees for services rendered by community
rehabilitation programs.

APPLICATION OF OTHER LAWS

Sec. 11. The provisions
of the Act of December 5, 1974 (Public Law 93-510) and of title V of the Act
of October 15, 1977 (Public Law 95-134) shall not apply to the administration
of the provisions of this Act or to the administration of any program or activity
under this Act.

ADMINISTRATION OF THE ACT

Sec. 12. (a) In
carrying out the purposes of this Act, the Commissioner may-

(1) provide consultative
services and technical assistance to public or nonprofit private agencies and
organizations, including assistance to enable such agencies and organizations
to facilitate meaningful and effective participation by individuals with disabilities
in workforce investment activities;

(2) provide short-term
training and technical instruction, including training for the personnel of
community rehabilitation programs, centers for independent living, and other
providers of services (including job coaches);

(3) conduct special
projects and demonstrations;

(4) collect, prepare,
publish, and disseminate special educational or informational materials, including
reports of the projects for which funds are provided under this Act; and

(5) provide monitoring
and conduct evaluations.

(b)(1) In carrying
out the duties under this Act, the Commissioner may utilize the services and
facilities of any agency of the Federal Government and of any other public or
nonprofit agency or organization, in accordance with agreements between the
Commissioner and the head thereof, and may pay therefor, in advance or by way
of reimbursement, as may be provided in the agreement.

(2) In carrying
out the provisions of this Act, the Commissioner shall appoint such task forces
as may be necessary to collect and disseminate information in order to improve
the ability of the Commissioner to carry out the provisions of this Act.

(c) The Commissioner
may promulgate such regulations as are considered appropriate to carry out the
Commissioner's duties under this Act.

(d) The Secretary
shall promulgate regulations regarding the requirements for the implementation
of an order of selection for vocational rehabilitation services under section
101(a)(5)(A) if such services cannot be provided to all eligible individuals
with disabilities who apply for such services.

(e) Not later than
180 days after the date of enactment of the Rehabilitation Act Amendments of
1998, the Secretary shall receive public comment and promulgate regulations
to implement the amendments made by the Rehabilitation Act Amendments of 1998.

(f) In promulgating
regulations to carry out this Act, the Secretary shall promulgate only regulations
that are necessary to administer and ensure compliance with the specific requirements
of this Act.

(g) There are authorized
to be appropriated to carry out this section such sums as may be necessary.

REPORTS

Sec. 13. (a) Not
later than one hundred and eighty days after the close of each fiscal year,
the Commissioner shall prepare and submit to the President and to the Congress
a full and complete report on the activities carried out under this Act, including
the activities and staffing of the information clearinghouse under section 15.

(b) The Commissioner
shall collect information to determine whether the purposes of this Act are
being met and to assess the performance of programs carried out under this Act.
The Commissioner shall take whatever action is necessary to assure that the
identity of each individual for which information is supplied under this section
is kept confidential, except as otherwise required by law (including regulation).

(c) In preparing
the report, the Commissioner shall annually collect and include in the report
information based on the information submitted by States in accordance with
section 101(a)(10), including information on administrative costs as required
by section 101(a)(10)(D). The Commissioner shall, to the maximum extent appropriate,
include in the report all information that is required to be submitted in the
reports described in section 136(d) of the Workforce Investment Act of 1998
and that pertains to the employment of individuals with disabilities.

EVALUATION

Sec. 14. (a) For
the purpose of improving program management and effectiveness, the Secretary,
in consultation with the Commissioner, shall evaluate all the programs authorized
by this Act, their general effectiveness in relation to their cost, their impact
on related programs, and their structure and mechanisms for delivery of services,
using appropriate methodology and evaluative research designs. The Secretary
shall establish and use standards for the evaluations required by this subsection.
Such an evaluation shall be conducted by a person not immediately involved in
the administration of the program evaluated.

(b) In carrying
out evaluations under this section, the Secretary shall obtain the opinions
of program and project participants about the strengths and weaknesses of the
programs and projects.

(c) The Secretary
shall take the necessary action to assure that all studies, evaluations, proposals,
and data produced or developed with Federal funds under this Act shall become
the property of the United States.

(d) Such information
as the Secretary may determine to be necessary for purposes of the evaluations
conducted under this section shall be made available upon request of the Secretary,
by the departments and agencies of the executive branch.

(e)(1) To assess
the linkages between vocational rehabilitation services and economic and noneconomic
outcomes, the Secretary shall continue to conduct a longitudinal study of a
national sample of applicants for the services.

(2) The study shall
address factors related to attrition and completion of the program through which
the services are provided and factors within and outside the program affecting
results. Appropriate comparisons shall be used to contrast the experiences of
similar persons who do not obtain the services.

(3) The study shall
be planned to cover the period beginning on the application of individuals with
disabilities for the services, through the eligibility determination and provision
of services for the individuals, and a further period of not less than 2 years
after the termination of services.

(g) There are authorized
to be appropriated to carry out this section such sums as may be necessary.

INFORMATION CLEARINGHOUSE

Sec. 15. (a) The
Secretary shall establish a central clearinghouse for information and resource
availability for individuals with disabilities which shall provide information
and data regarding-

(1) the location,
provision, and availability of services and programs for individuals with disabilities,
including such information and data provided by State workforce investment boards
regarding such services and programs authorized under title I of such Act;

(2) research and
recent medical and scientific developments bearing on disabilities (and their
prevention, amelioration, causes, and cures); and

(3) the current
numbers of individuals with disabilities and their needs. The clearinghouse
shall also provide any other relevant information and data which the Secretary
considers appropriate.

(b) The Commissioner
may assist the Secretary to develop within the Department of Education a coordinated
system of information and data retrieval, which will have the capacity and responsibility
to provide information regarding the information and data referred to in subsection
(a) of this section to the Congress, public and private agencies and organizations,
individuals with disabilities and their families, professionals in fields serving
such individuals, and the general public.

(c) The office
established to carry out the provisions of this section shall be known as the
"Office of Information and Resources for Individuals with Disabilities".

(d) There are authorized
to be appropriated to carry out this section such sums as may be necessary.

TRANSFER OF FUNDS

Sec. 16. (a) Except
as provided in subsection (b) of this section, no funds appropriated under this
Act for any program or activity may be used for any purpose other than that
for which the funds were specifically authorized.

(b) No more than
1 percent of funds appropriated for discretionary grants, contracts, or cooperative
agreements authorized by this Act may be used for the purpose of providing non-Federal
panels of experts to review applications for such grants, contracts, or cooperative
agreements.

STATE ADMINISTRATION

Sec. 17. The application
of any State rule or policy relating to the administration or operation of programs
funded by this Act (including any rule or policy based on State interpretation
of any Federal law, regulation, or guideline) shall be identified as a State
imposed requirement.

REVIEW OF APPLICATIONS

Sec. 18. Applications for grants in excess of $100,000 in the aggregate
authorized to be funded under this Act, other than grants primarily for the
purpose of conducting dissemination or conferences, shall be reviewed by panels
of experts which shall include a majority of non-Federal members. Non-Federal
members may be provided travel, per diem, and consultant fees not to exceed
the daily equivalent of the rate of pay for level 4 of the Senior Executive
Service Schedule under section 5382 of title 5, United States Code.

CARRYOVER

Sec. 19. (a)In
General

Except as provided in subsection
(b), and notwithstanding any other provision of law -

(1) any funds appropriated
for a fiscal year to carry out any grant program under part B of title I, section
509 (except as provided in section 509(b)), part B of title VI, part B or C
of chapter 1 of title VII, or chapter 2 of title VII (except as provided in
section 752(b)), including any funds reallotted under any such grant program,
that are not obligated and expended by recipients prior to the beginning of
the succeeding fiscal year; or

(2) any amounts
of program income, including reimbursement payments under the Social Security
Act (42 U.S.C. 301 et seq.), received by recipients under any grant program
specified in paragraph (1) that are not obligated and expended by recipients
prior to the beginning of the fiscal year succeeding the fiscal year in which
such amounts were received, shall remain available for obligation and expenditure
by such recipients during such succeeding fiscal year.

(b)Non-Federal
Share

Such funds shall remain
available for obligation and expenditure by a recipient as provided in subsection
(a) only to the extent that the recipient complied with any Federal share requirements
applicable to the program for the fiscal year for which the funds were appropriated.

CLIENT ASSISTANCE INFORMATION

Sec. 20. All programs,
including community rehabilitation programs, and projects, that provide services
to individuals with disabilities under this Act shall advise such individuals
who are applicants for or recipients of the services, or the applicants' representatives
or individuals' representatives, of the availability and purposes of the client
assistance program under section 112, including information on means of seeking
assistance under such program.

TRADITIONALLY UNDERSERVED POPULATIONS

Sec. 21. (a)Findings

With respect to the programs
authorized in titles II through VII, the Congress finds as follows:

(1)Racial profile

The racial profile of America
is rapidly changing. While the rate of increase for white Americans is 3.2 percent,
the rate of increase for racial and ethnic minorities is much higher: 38.6 percent
for Latinos, 14.6 percent for African-Americans, and 40.1 percent for Asian-Americans
and other ethnic groups. By the year 2000, the Nation will have 260,000,000
people, one of every three of whom will be either African-American, Latino,
or Asian-American.

(2)Rate of disability

Ethnic and racial minorities
tend to have disabling conditions at a disproportionately high rate. The rate
of work-related disability for American Indians is about one and one-half times
that of the general population. African-Americans are also one and one-half
times more likely to be disabled than whites and twice as likely to be significantly
disabled.

(3)Inequitable
treatment

Patterns of inequitable
treatment of minorities have been documented in all major junctures of the vocational
rehabilitation process. As compared to white Americans, a larger percentage
of African-American applicants to the vocational rehabilitation system is denied
acceptance. Of applicants accepted for service, a larger percentage of African-American
cases is closed without being rehabilitated. Minorities are provided less training
than their white counterparts. Consistently, less money is spent on minorities
than on their white counterparts.

(4)Recruitment

Recruitment efforts within
vocational rehabilitation at the level of preservice training, continuing education,
and in-service training must focus on bringing larger numbers of minorities
into the profession in order to provide appropriate practitioner knowledge,
role models, and sufficient manpower to address the clearly changing demography
of vocational rehabilitation.

(b)Outreach
to Minorities

(1)In general

For each fiscal year, the
Commissioner and the Director of the National Institute on Disability and Rehabilitation
Research (referred to in this subsection as the "Director") shall
reserve 1 percent of the funds appropriated for the fiscal year for programs
authorized under titles II, III, VI, and VII to carry out this subsection. The
Commissioner and the Director shall use the reserved funds to carry out 1 or
more of the activities described in paragraph (2) through a grant, contract,
or cooperative agreement.

(2)Activities

The activities carried
out by the Commissioner and the Director shall include 1 or more of the following:

(A) Making awards
to minority entities and Indian tribes to carry out activities under the programs
authorized under titles II, III, VI, and VII.

(B) Making awards
to minority entities and Indian tribes to conduct research, training, technical
assistance, or a related activity, to improve services provided under this Act,
especially services provided to individuals from minority backgrounds.

(C) Making awards
to entities described in paragraph (3) to provide outreach and technical assistance
to minority entities and Indian tribes to promote their participation in activities
funded under this Act, including assistance to enhance their capacity to carry
out such activities.

(3)Eligibility

To be eligible to receive
an award under paragraph (2)(C), an entity shall be a State or a public or private
nonprofit agency or organization, such as an institution of higher education
or an Indian tribe.

(4)Report

In each fiscal year, the
Commissioner and the Director shall prepare and submit to Congress a report
that describes the activities funded under this subsection for the preceding
fiscal year.

(5)Definitions

In this subsection:

(A)Historically
black college or university: The term "historically Black college or
university" means a part B institution, as defined in section 322(2) of
the Higher Education Act of 1965 (20 U.S.C. 1061(2)).

(B)Minority
entity: The term "minority entity" means an entity that is a historically
Black college or university, a Hispanic-serving institution of higher education,
an American Indian tribal college or university, or another institution of higher
education whose minority student enrollment is at least 50 percent.

(c)Demonstration

In awarding grants, or
entering into contracts or cooperative agreements under titles I, II, III, VI,
and VII, and section 509, the Commissioner and the Director, in appropriate
cases, shall require applicants to demonstrate how the applicants will address,
in whole or in part, the needs of individuals with disabilities from minority
backgrounds.

TITLE I-VOCATIONAL REHABILITATION SERVICES

Part A-General Provisions

Sec. 100. Declaration of Policy; Authorization of Appropriations

(a)Findings;
Purpose; Policy

(1) Findings

Congress finds that-

(A) work-

(i) is a valued
activity, both for individuals and society; and

(ii) fulfills the
need of an individual to be productive, promotes independence, enhances self-esteem,
and allows for participation in the mainstream of life in the United States;

(B) as a group,
individuals with disabilities experience staggering levels of unemployment and
poverty;

(C) individuals
with disabilities, including individuals with the most significant disabilities,
have demonstrated their ability to achieve gainful employment in integrated
settings if appropriate services and supports are provided;

(D) reasons for
significant numbers of individuals with disabilities not working, or working
at levels not commensurate with their abilities and capabilities, include-

(i) discrimination;

(ii) lack of accessible
and available transportation;

(iii) fear of losing
health coverage under the medicare and medicaid programs carried out under titles
XVIII and XIX of the Social Security Act (42 U.S.C. 1395 et seq. and 1396 et
seq.) or fear of losing private health insurance; and

(E) enforcement
of title V and of the Americans with Disabilities Act of 1990 (42 U.S.C. 12101
et seq.) holds the promise of ending discrimination for individuals with disabilities;

(F) the provision
of workforce investment activities and vocational rehabilitation services can
enable individuals with disabilities, including individuals with the most significant
disabilities, to pursue meaningful careers by securing gainful employment commensurate
with their abilities and capabilities; and

(G) linkages between
the vocational rehabilitation programs established under this title and other
components of the statewide workforce investment systems are critical to ensure
effective and meaningful participation by individuals with disabilities in workforce
investment activities.

(2)Purpose

The purpose of this title
is to assist States in operating statewide comprehensive, coordinated, effective,
efficient, and accountable programs of vocational rehabilitation, each of which
is-

(A) an integral
part of a statewide workforce investment system; and

(B) designed to
assess, plan, develop, and provide vocational rehabilitation services for individuals
with disabilities, consistent with their strengths, resources, priorities, concerns,
abilities, capabilities, interests, and informed choice, so that such individuals
may prepare for and engage in gainful employment.

(3)Policy

It is the policy of the
United States that such a program shall be carried out in a manner consistent
with the following principles:

(A) Individuals
with disabilities, including individuals with the most significant disabilities,
are generally presumed to be capable of engaging in gainful employment and the
provision of individualized vocational rehabilitation services can improve their
ability to become gainfully employed.

(B) Individuals
with disabilities must be provided the opportunities to obtain gainful employment
in integrated settings.

(C) Individuals
who are applicants for such programs or eligible to participate in such programs
must be active and full partners in the vocational rehabilitation process, making
meaningful and informed choices-

(i) during assessments
for determining eligibility and vocational rehabilitation needs; and

(ii) in the selection
of employment outcomes for the individuals, services needed to achieve the outcomes,
entities providing such services, and the methods used to secure such services.

(D) Families and
other natural supports can play important roles in the success of a vocational
rehabilitation program, if the individual with a disability involved requests,
desires, or needs such supports.

(E) Vocational rehabilitation
counselors that are trained and prepared in accordance with State policies and
procedures as described in section 101(a)(7)(B) (referred to individually in
this title as a "qualified vocational rehabilitation counselor"),
other qualified rehabilitation personnel, and other qualified personnel facilitate
the accomplishment of the employment outcomes and objectives of an individual.

(F) Individuals
with disabilities and the individuals' representatives are full partners in
a vocational rehabilitation program and must be involved on a regular basis
and in a meaningful manner with respect to policy development and implementation.

(G) Accountability
measures must facilitate the accomplishment of the goals and objectives of the
program, including providing vocational rehabilitation services to, among others,
individuals with the most significant disabilities.

(b)Authorization
of Appropriations

(1)In general

For the purpose of making
grants to States under part B to assist States in meeting the costs of vocational
rehabilitation services provided in accordance with State plans under section
101, there are authorized to be appropriated such sums as may be necessary for
fiscal years 1999 through 2003, except that the amount to be appropriated for
a fiscal year shall not be less than the amount of the appropriation under this
paragraph for the immediately preceding fiscal year, increased by the percentage
change in the Consumer Price Index determined under subsection (c) for the immediately
preceding fiscal year.

(2)Reference

The reference in paragraph
(1) to grants to States under part B shall not be considered to refer to grants
under section 112.

(c)Consumer
Price Index

(1)Percentage
change

No later than November
15 of each fiscal year (beginning with fiscal year 1979), the Secretary of Labor
shall publish in the Federal Register the percentage change in the Consumer
Price Index published for October of the preceding fiscal year and October of
the fiscal year in which such publication is made.

(2)Application

(A)Increase

If in any fiscal year the
percentage change published under paragraph (1) indicates an increase in the
Consumer Price Index, then the amount to be appropriated under subsection (b)(1)
for the subsequent fiscal year shall be at least the amount appropriated under
subsection (b)(1) for the fiscal year in which the publication is made under
paragraph (1) increased by such percentage change.

(B)No increase
or decrease

If in any fiscal year the
percentage change published under paragraph (1) does not indicate an increase
in the Consumer Price Index, then the amount to be appropriated under subsection
(b)(1) for the subsequent fiscal year shall be at least the amount appropriated
under subsection (b)(1) for the fiscal year in which the publication is made
under paragraph (1).

(3)Definition

For purposes of this section,
the term "Consumer Price Index" means the Consumer Price Index for
All Urban Consumers, published monthly by the Bureau of Labor Statistics.

(d)Extension

(1)In general

(A)Authorization
or duration of program

Unless the Congress in
the regular session which ends prior to the beginning of the terminal fiscal
year-

(i) of the authorization
of appropriations for the program authorized by the State grant program under
part B of this title; or

(ii) of the duration
of the program authorized by the State grant program under part B of this title;

has passed legislation
which would have the effect of extending the authorization or duration (as the
case may be) of such program, such authorization or duration is automatically
extended for 1 additional year for the program authorized by this title.

(B)Calculation

The amount authorized to
be appropriated for the additional fiscal year described in subparagraph (A)
shall be an amount equal to the amount appropriated for such program for fiscal
year 2003, increased by the percentage change in the Consumer Price Index determined
under subsection (c) for the immediately preceding fiscal year, if the percentage
change indicates an increase.

(2)Construction

(A)Passage of
legislation

For the purposes of paragraph
(1)(A), Congress shall not be deemed to have passed legislation unless such
legislation becomes law.

(B)Acts or determinations
of commissioner

In any case where the Commissioner
is required under an applicable statute to carry out certain acts or make certain
determinations which are necessary for the continuation of the program authorized
by this title, if such acts or determinations are required during the terminal
year of such program, such acts and determinations shall be required during
any fiscal year in which the extension described in that part of paragraph (1)
that follows clause (ii) of paragraph (1)(A) is in effect.

Sec. 101. State Plans

(a)Plan Requirements

(1)In general

(A)Submission

To be eligible to participate
in programs under this title, a State shall submit to the Commissioner a State
plan for vocational rehabilitation services that meets the requirements of this
section, on the same date that the State submits a State plan under section
112 of the Workforce Investment Act of 1998.

(B)Nonduplication

The State shall not be
required to submit, in the State plan for vocational rehabilitation services,
policies, procedures, or descriptions required under this title that have been
previously submitted to the Commissioner and that demonstrate that such State
meets the requirements of this title, including any policies, procedures, or
descriptions submitted under this title as in effect on the day before the effective
date of the Rehabilitation Act Amendments of 1998.

(C)Duration

The State plan shall remain
in effect subject to the submission of such modifications as the State determines
to be necessary or as the Commissioner may require based on a change in State
policy, a change in Federal law (including regulations), an interpretation of
this Act by a Federal court or the highest court of the State, or a finding
by the Commissioner of State noncompliance with the requirements of this Act,
until the State submits and receives approval of a new State plan.

(2)Designated
state agency; designated state unit

(A)Designated
state agency

The State plan shall designate
a State agency as the sole State agency to administer the plan, or to supervise
the administration of the plan by a local agency, except that-

(i) where, under
State law, the State agency for individuals who are blind or another agency
that provides assistance or services to adults who are blind is authorized to
provide vocational rehabilitation services to individuals who are blind, that
agency may be designated as the sole State agency to administer the part of
the plan under which vocational rehabilitation services are provided for individuals
who are blind (or to supervise the administration of such part by a local agency)
and a separate State agency may be designated as the sole State agency to administer
or supervise the administration of the rest of the State plan;

(ii) the Commissioner,
on the request of a State, may authorize the designated State agency to share
funding and administrative responsibility with another agency of the State or
with a local agency in order to permit the agencies to carry out a joint program
to provide services to individuals with disabilities, and may waive compliance,
with respect to vocational rehabilitation services furnished under the joint
program, with the requirement of paragraph (4) that the plan be in effect in
all political subdivisions of the State; and

(iii) in the case
of American Samoa, the appropriate State agency shall be the Governor of American
Samoa.

(B)Designated
state unit

The State agency designated
under subparagraph (A) shall be-

(i) a State agency
primarily concerned with vocational rehabilitation, or vocational and other
rehabilitation, of individuals with disabilities; or

(ii) if not such
an agency, the State agency (or each State agency if 2 are so designated) shall
include a vocational rehabilitation bureau, division, or other organizational
unit that-

(I) is primarily
concerned with vocational rehabilitation, or vocational and other rehabilitation,
of individuals with disabilities, and is responsible for the vocational rehabilitation
program of the designated State agency;

(II) has a full-time
director;

(III) has a staff
employed on the rehabilitation work of the organizational unit all or substantially
all of whom are employed full time on such work; and

(IV) is located
at an organizational level and has an organizational status within the designated
State agency comparable to that of other major organizational units of the designated
State agency.

(C)Responsibility
for services for the blind

If the State has designated
only 1 State agency pursuant to subparagraph (A), the State may assign responsibility
for the part of the plan under which vocational rehabilitation services are
provided for individuals who are blind to an organizational unit of the designated
State agency and assign responsibility for the rest of the plan to another organizational
unit of the designated State agency, with the provisions of subparagraph (B)
applying separately to each of the designated State units.

(3)Non-federal
share

The State plan shall provide
for financial participation by the State, or if the State so elects, by the
State and local agencies, to provide the amount of the non-Federal share of
the cost of carrying out part B.

(4)Statewideness

The State plan shall provide
that the plan shall be in effect in all political subdivisions of the State,
except that-

(A) in the case
of any activity that, in the judgment of the Commissioner, is likely to assist
in promoting the vocational rehabilitation of substantially larger numbers of
individuals with disabilities or groups of individuals with disabilities, the
Commissioner may waive compliance with the requirement that the plan be in effect
in all political subdivisions of the State to the extent and for such period
as may be provided in accordance with regulations prescribed by the Commissioner,
but only if the non-Federal share of the cost of the vocational rehabilitation
services involved is met from funds made available by a local agency (including
funds contributed to such agency by a private agency, organization, or individual);
and

(B) in a case in
which earmarked funds are used toward the non-Federal share and such funds are
earmarked for particular geographic areas within the State, the earmarked funds
may be used in such areas if the State notifies the Commissioner that the State
cannot provide the full non-Federal share without such funds.

(5) Order of selection
for vocational rehabilitation services

In the event that vocational
rehabilitation services cannot be provided to all eligible individuals with
disabilities in the State who apply for the services, the State plan shall-

(A) show the order
to be followed in selecting eligible individuals to be provided vocational rehabilitation
services;

(B) provide the
justification for the order of selection;

(C) include an assurance
that, in accordance with criteria established by the State for the order of
selection, individuals with the most significant disabilities will be selected
first for the provision of vocational rehabilitation services; and

(D) provide that
eligible individuals, who do not meet the order of selection criteria, shall
have access to services provided through the information and referral system
implemented under paragraph (20).

(6)Methods for
administration

(A)In general

The State plan shall provide
for such methods of administration as are found by the Commissioner to be necessary
for the proper and efficient administration of the plan.

(B)Employment
of individuals with disabilities

The State plan shall provide
that the designated State agency, and entities carrying out community rehabilitation
programs in the State, who are in receipt of assistance under this title shall
take affirmative action to employ and advance in employment qualified individuals
with disabilities covered under, and on the same terms and conditions as set
forth in, section 503.

(C)Facilities

The State plan shall provide
that facilities used in connection with the delivery of services assisted under
the State plan shall comply with the Act entitled "An Act to insure that
certain buildings financed with Federal funds are so designed and constructed
as to be accessible to the physically handicapped", approved on August
12, 1968 (commonly known as the "Architectural Barriers Act of 1968"),
with section 504, and with the Americans with Disabilities Act of 1990.

(7)Comprehensive
system of personnel development

The State plan shall-

(A) include a description
(consistent with the purposes of this Act) of a comprehensive system of personnel
development, which shall include-

(i) a description
of the procedures and activities the designated State agency will undertake
to ensure an adequate supply of qualified State rehabilitation professionals
and paraprofessionals for the designated State unit, including the development
and maintenance of a system for determining, on an annual basis-

(I) the number and
type of personnel that are employed by the designated State unit in the provision
of vocational rehabilitation services, including ratios of qualified vocational
rehabilitation counselors to clients; and

(II) the number
and type of personnel needed by the State, and a projection of the numbers of
such personnel that will be needed in 5 years, based on projections of the number
of individuals to be served, the number of such personnel who are expected to
retire or leave the vocational rehabilitation field, and other relevant factors;

(ii) where appropriate,
a description of the manner in which activities will be undertaken under this
section to coordinate the system of personnel development with personnel development
activities under the Individuals with Disabilities Education Act (20 U.S.C.
1400 et seq.);

(iii) a description
of the development and maintenance of a system of determining, on an annual
basis, information on the programs of institutions of higher education within
the State that are preparing rehabilitation professionals, including-

(I) the numbers
of students enrolled in such programs; and

(II) the number
of such students who graduated with certification or licensure, or with credentials
to qualify for certification or licensure, as a rehabilitation professional
during the past year;

(iv) a description
of the development, updating, and implementation of a plan that-

(I) will address
the current and projected vocational rehabilitation services personnel training
needs for the designated State unit; and

(II) provides for
the coordination and facilitation of efforts between the designated State unit,
institutions of higher education, and professional associations to recruit,
prepare, and retain qualified personnel, including personnel from minority backgrounds,
and personnel who are individuals with disabilities; and

(v) a description
of the procedures and activities the designated State agency will undertake
to ensure that all personnel employed by the designated State unit are appropriately
and adequately trained and prepared, including-

(I) a system for
the continuing education of rehabilitation professionals and paraprofessionals
within the designated State unit, particularly with respect to rehabilitation
technology; and

(II) procedures
for acquiring and disseminating to rehabilitation professionals and paraprofessionals
within the designated State unit significant knowledge from research and other
sources, including procedures for providing training regarding the amendments
to this Act made by the Rehabilitation Act Amendments of 1998;

(B) set forth policies
and procedures relating to the establishment and maintenance of standards to
ensure that personnel, including rehabilitation professionals and paraprofessionals,
needed within the designated State unit to carry out this part are appropriately
and adequately prepared and trained, including-

(i) the establishment
and maintenance of standards that are consistent with any national or State
approved or recognized certification, licensing, registration, or other comparable
requirements that apply to the area in which such personnel are providing vocational
rehabilitation services; and

(ii) to the extent
that such standards are not based on the highest requirements in the State applicable
to a specific profession or discipline, the steps the State is taking to require
the retraining or hiring of personnel within the designated State unit that
meet appropriate professional requirements in the State; and

(C) contain provisions
relating to the establishment and maintenance of minimum standards to ensure
the availability of personnel within the designated State unit, to the maximum
extent feasible, trained to communicate in the native language or mode of communication
of an applicant or eligible individual.

(8)Comparable
services and benefits

(A)Determination
of availability

(i) In general

The State plan shall include
an assurance that, prior to providing any vocational rehabilitation service
to an eligible individual, except those services specified in paragraph (5)(D)
and in paragraphs (1) through (4) and (14) of section 103(a), the designated
State unit will determine whether comparable services and benefits are available
under any other program (other than a program carried out under this title)
unless such a determination would interrupt or delay-

(I) the progress
of the individual toward achieving the employment outcome identified in the
individualized plan for employment of the individual in accordance with section
102(b);

(II) an immediate
job placement; or

(III) the provision
of such service to any individual at extreme medical risk.

(ii)Awards and
scholarships

For purposes of clause
(i), comparable benefits do not include awards and scholarships based on merit.

(B) Interagency agreement

The State plan shall include
an assurance that the Governor of the State, in consultation with the entity
in the State responsible for the vocational rehabilitation program and other
appropriate agencies, will ensure that an interagency agreement or other mechanism
for interagency coordination takes effect between any appropriate public entity,
including the State entity responsible for administering the State medicaid
program, a public institution of higher education, and a component of the statewide
workforce investment system, and the designated State unit, in order to ensure
the provision of vocational rehabilitation services described in subparagraph
(A) (other than those services specified in paragraph (5)(D), and in paragraphs
(1) through (4) and (14) of section 103(a)), that are included in the individualized
plan for employment of an eligible individual, including the provision of such
vocational rehabilitation services during the pendency of any dispute described
in clause (iii). Such agreement or mechanism shall include the following:

(i) Agency financial responsibility

An identification of, or
a description of a method for defining, the financial responsibility of such
public entity for providing such services, and a provision stating the financial
responsibility of such public entity for providing such services.

(ii)Conditions,
terms, and procedures of reimbursement

Information specifying
the conditions, terms, and procedures under which a designated State unit shall
be reimbursed by other public entities for providing such services, based on
the provisions of such agreement or mechanism.

(iii)Interagency
disputes

Information specifying
procedures for resolving interagency disputes under the agreement or other mechanism
(including procedures under which the designated State unit may initiate proceedings
to secure reimbursement from other public entities or otherwise implement the
provisions of the agreement or mechanism).

(iv) Coordination of
services procedures

Information specifying
policies and procedures for public entities to determine and identify the interagency
coordination responsibilities of each public entity to promote the coordination
and timely delivery of vocational rehabilitation services (except those services
specified in paragraph (5)(D) and in paragraphs (1) through (4) and (14) of
section 103(a)).

(C) Responsibilities
of other public entities

(i)Responsibilities
under other law

Notwithstanding subparagraph
(B), if any public entity other than a designated State unit is obligated under
Federal or State law, or assigned responsibility under State policy or under
this paragraph, to provide or pay for any services that are also considered
to be vocational rehabilitation services (other than those specified in paragraph
(5)(D) and in paragraphs (1) through (4) and (14) of section 103(a)), such public
entity shall fulfill that obligation or responsibility, either directly or by
contract or other arrangement.

(ii) Reimbursement

If a public entity other
than the designated State unit fails to provide or pay for the services described
in clause (i) for an eligible individual, the designated State unit shall provide
or pay for such services to the individual. Such designated State unit may claim
reimbursement for the services from the public entity that failed to provide
or pay for such services. Such public entity shall reimburse the designated
State unit pursuant to the terms of the interagency agreement or other mechanism
described in this paragraph according to the procedures established in such
agreement or mechanism pursuant to subparagraph (B)(ii).

(D)Methods

The Governor of a State
may meet the requirements of subparagraph (B) through-

(i) a State statute
or regulation;

(ii) a signed agreement
between the respective officials of the public entities that clearly identifies
the responsibilities of each public entity relating to the provision of services;
or

(iii) another appropriate
method, as determined by the designated State unit.

(9) Individualized plan
for employment

(A) Development and implementation

The State plan shall include
an assurance that an individualized plan for employment meeting the requirements
of section 102(b) will be developed and implemented in a timely manner for an
individual subsequent to the determination of the eligibility of the individual
for services under this title, except that in a State operating under an order
of selection described in paragraph (5), the plan will be developed and implemented
only for individuals meeting the order of selection criteria of the State.

(B) Provision of services

The State plan shall include
an assurance that such services will be provided in accordance with the provisions
of the individualized plan for employment.

(10) Reporting requirements

(A) In general

The State plan shall include
an assurance that the designated State agency will submit reports in the form
and level of detail and at the time required by the Commissioner regarding applicants
for, and eligible individuals receiving, services under this title.

(B)Annual reporting

In specifying the information
to be submitted in the reports, the Commissioner shall require annual reporting
on the eligible individuals receiving the services, on those specific data elements
described in section 136(d)(2) of the Workforce Investment Act of 1998 that
are determined by the Secretary to be relevant in assessing the performance
of designated State units in carrying out the vocational rehabilitation program
established under this title.

(C)Additional
data

In specifying the information
required to be submitted in the reports, the Commissioner shall require additional
data with regard to applicants and eligible individuals related to-

(i) the number of
applicants and the number of individuals determined to be eligible or ineligible
for the program carried out under this title, including-

(I) the number of
individuals determined to be ineligible because they did not require vocational
rehabilitation services, as provided in section 102(a); and

(II) the number
of individuals determined, on the basis of clear and convincing evidence, to
be too severely disabled to benefit in terms of an employment outcome from vocational
rehabilitation services;

(ii) the number
of individuals who received vocational rehabilitation services through the program,
including-

(I) the number who
received services under paragraph (5)(D), but not assistance under an individualized
plan for employment;

(II) of those recipients
who are individuals with significant disabilities, the number who received assistance
under an individualized plan for employment consistent with section 102(b);
and

(III) of those
recipients who are not individuals with significant disabilities, the number
who received assistance under an individualized plan for employment consistent
with section 102(b);

(iii) of those
applicants and eligible recipients who are individuals with significant disabilities-

(I) the number who
ended their participation in the program carried out under this title and the
number who achieved employment outcomes after receiving vocational rehabilitation
services; and

(II) the number
who ended their participation in the program and who were employed 6 months
and 12 months after securing or regaining employment, or, in the case of individuals
whose employment outcome was to retain or advance in employment, who were employed
6 months and 12 months after achieving their employment outcome, including-

(aa) the number
who earned the minimum wage rate specified in section 6(a)(1) of the Fair Labor
Standards Act of 1938 (29 U.S.C. 206(a)(1)) or another wage level set by the
Commissioner, during such employment; and

(bb) the number
who received employment benefits from an employer during such employment; and

(iv) of those applicants
and eligible recipients who are not individuals with significant disabilities-

(I) the number who
ended their participation in the program carried out under this title and the
number who achieved employment outcomes after receiving vocational rehabilitation
services; and

(II) the number
who ended their participation in the program and who were employed 6 months
and 12 months after securing or regaining employment, or, in the case of individuals
whose employment outcome was to retain or advance in employment, who were employed
6 months and 12 months after achieving their employment outcome, including-

(aa) the number
who earned the minimum wage rate specified in section 6(a)(1) of the Fair Labor
Standards Act of 1938 (29 U.S.C. 206(a)(1)) or another wage level set by the
Commissioner, during such employment; and

(bb) the number
who received employment benefits from an employer during such employment.

(D) Costs and results

The Commissioner shall
also require that the designated State agency include in the reports information
on-

(i) the costs under
this title of conducting administration, providing assessment services, counseling
and guidance, and other direct services provided by designated State agency
staff, providing services purchased under individualized plans for employment,
supporting small business enterprises, establishing, developing, and improving
community rehabilitation programs, providing other services to groups, and facilitating
use of other programs under this Act and title I of the Workforce Investment
Act of 1998 by eligible individuals; and

(ii) the results
of annual evaluation by the State of program effectiveness under paragraph (15)(E).

(E) Additional information

The Commissioner shall
require that each designated State unit include in the reports additional information
related to the applicants and eligible individuals, obtained either through
a complete count or sampling, including-

(i) information
on-

(I) age, gender,
race, ethnicity, education, category of impairment, severity of disability,
and whether the individuals are students with disabilities;

(II) dates of application,
determination of eligibility or ineligibility, initiation of the individualized
plan for employment, and termination of participation in the program;

(III) earnings at
the time of application for the program and termination of participation in
the program;

(IV) work status
and occupation;

(V) types of services,
including assistive technology services and assistive technology devices, provided
under the program;

(VI) types of public
or private programs or agencies that furnished services under the program; and

(VII) the reasons
for individuals terminating participation in the program without achieving an
employment outcome; and

(ii) information
necessary to determine the success of the State in meeting-

(I) the State performance
measures established under section 136(b) of the Workforce Investment Act of
1998, to the extent the measures are applicable to individuals with disabilities;
and

(II) the standards
and indicators established pursuant to section 106.

(F) Completeness and confidentiality

The State plan shall include
an assurance that the information submitted in the reports will include a complete
count, except as provided in subparagraph (E), of the applicants and eligible
individuals, in a manner permitting the greatest possible cross-classification
of data and that the identity of each individual for which information is supplied
under this paragraph will be kept confidential.

(11)Cooperation,
collaboration, and coordination

(A)Cooperative
agreements with other components of statewide workforce investment systems

The State plan shall provide
that the designated State unit or designated State agency shall enter into a
cooperative agreement with other entities that are components of the statewide
workforce investment system of the State, regarding the system, which agreement
may provide for-

(I) the availability
and benefits of, and information on eligibility standards for, vocational rehabilitation
services; and

(II) the promotion
of equal, effective, and meaningful participation by individuals with disabilities
in workforce investment activities in the State through the promotion of program
accessibility, the use of nondiscriminatory policies and procedures, and the
provision of reasonable accommodations, auxiliary aids and services, and rehabilitation
technology, for individuals with disabilities;

(ii) use of information
and financial management systems that link all components of the statewide workforce
investment system, that link the components to other electronic networks, including
nonvisual electronic networks, and that relate to such subjects as employment
statistics, and information on job vacancies, career planning, and workforce
investment activities;

(iii) use of customer
service features such as common intake and referral procedures, customer databases,
resource information, and human services hotlines;

(iv) establishment
of cooperative efforts with employers to-

(I) facilitate
job placement; and

(II) carry out any
other activities that the designated State unit and the employers determine
to be appropriate;

(v) identification
of staff roles, responsibilities, and available resources, and specification
of the financial responsibility of each component of the statewide workforce
investment system with regard to paying for necessary services (consistent with
State law and Federal requirements); and

(vi) specification
of procedures for resolving disputes among such components.

(B)Replication
of cooperative agreements

The State plan shall provide
for the replication of such cooperative agreements at the local level between
individual offices of the designated State unit and local entities carrying
out activities through the statewide workforce investment system.

(C)Interagency
cooperation with other agencies

The State plan shall include
descriptions of interagency cooperation with, and utilization of the services
and facilities of, Federal, State, and local agencies and programs, including
programs carried out by the Under Secretary for Rural Development of the Department
of Agriculture and State use contracting programs, to the extent that such agencies
and programs are not carrying out activities through the statewide workforce
investment system.

(D)Coordination
with education officials

The State plan shall contain
plans, policies, and procedures for coordination between the designated State
agency and education officials responsible for the public education of students
with disabilities, that are designed to facilitate the transition of the students
with disabilities from the receipt of educational services in school to the
receipt of vocational rehabilitation services under this title, including information
on a formal interagency agreement with the State educational agency that, at
a minimum, provides for-

(i) consultation
and technical assistance to assist educational agencies in planning for the
transition of students with disabilities from school to post-school activities,
including vocational rehabilitation services;

(ii) transition
planning by personnel of the designated State agency and educational agency
personnel for students with disabilities that facilitates the development and
completion of their individualized education programs under section 614(d) of
the Individuals with Disabilities Education Act (as added by section 101 of
Public Law 105-17);

(iii) the roles
and responsibilities, including financial responsibilities, of each agency,
including provisions for determining State lead agencies and qualified personnel
responsible for transition services; and

(iv) procedures
for outreach to and identification of students with disabilities who need the
transition services.

(E) Coordination with
statewide independent living councils and independent living centers

The State plan shall include
an assurance that the designated State unit, the Statewide Independent Living
Council established under section 705, and the independent living centers described
in part C of title VII within the State have developed working relationships
and coordinate their activities.

(F) Cooperative agreement
with recipients of grants for services to american indians

In applicable cases, the
State plan shall include an assurance that the State has entered into a formal
cooperative agreement with each grant recipient in the State that receives funds
under part C. The agreement shall describe strategies for collaboration and
coordination in providing vocational rehabilitation services to American Indians
who are individuals with disabilities, including-

(i) strategies
for interagency referral and information sharing that will assist in eligibility
determinations and the development of individualized plans for employment;

(ii) procedures
for ensuring that American Indians who are individuals with disabilities and
are living near a reservation or tribal service area are provided vocational
rehabilitation services; and

(iii) provisions
for sharing resources in cooperative studies and assessments, joint training
activities, and other collaborative activities designed to improve the provision
of services to American Indians who are individuals with disabilities.

(12)Residency

The State plan shall include
an assurance that the State will not impose a residence requirement that excludes
from services provided under the plan any individual who is present in the State.

(13) Services to american
indians

The State plan shall include
an assurance that, except as otherwise provided in part C, the designated State
agency will provide vocational rehabilitation services to American Indians who
are individuals with disabilities residing in the State to the same extent as
the designated State agency provides such services to other significant populations
of individuals with disabilities residing in the State.

(14)Annual
review of individuals in extended employment or other employment under special
certificate provisions of the fair labor standards act of 1938

The State plan shall provide
for-

(A) an annual review
and reevaluation of the status of each individual with a disability served under
this title who has achieved an employment outcome either in an extended employment
setting in a community rehabilitation program or any other employment under
section 14(c) of the Fair Labor Standards Act (29 U.S.C. 214(c)) for 2 years
after the achievement of the outcome (and thereafter if requested by the individual
or, if appropriate, the individual's representative), to determine the interests,
priorities, and needs of the individual with respect to competitive employment
or training for competitive employment;

(B) input into
the review and reevaluation, and a signed acknowledgment that such review and
reevaluation have been conducted, by the individual with a disability, or, if
appropriate, the individual's representative; and

(C) maximum efforts,
including the identification and provision of vocational rehabilitation services,
reasonable accommodations, and other necessary support services, to assist the
individuals described in subparagraph (A) in engaging in competitive employment.

(15)Annual
state goals and reports of progress

(A) Assessments and estimates

The State plan shall-

(i) include the
results of a comprehensive, statewide assessment, jointly conducted by the designated
State unit and the State Rehabilitation Council (if the State has such a Council)
every 3 years, describing the rehabilitation needs of individuals with disabilities
residing within the State, particularly the vocational rehabilitation services
needs of-

(I) individuals
with the most significant disabilities, including their need for supported employment
services;

(II) individuals
with disabilities who are minorities and individuals with disabilities who have
been unserved or underserved by the vocational rehabilitation program carried
out under this title; and

(III) individuals
with disabilities served through other components of the statewide workforce
investment system (other than the vocational rehabilitation program), as identified
by such individuals and personnel assisting such individuals through the components;

(ii) include an
assessment of the need to establish, develop, or improve community rehabilitation
programs within the State; and

(iii) provide that
the State shall submit to the Commissioner a report containing information regarding
updates to the assessments, for any year in which the State updates the assessments.

(B) Annual estimates

The State plan shall include,
and shall provide that the State shall annually submit a report to the Commissioner
that includes, State estimates of-

(i) the number of
individuals in the State who are eligible for services under this title;

(ii) the number
of such individuals who will receive services provided with funds provided under
part B and under part B of title VI, including, if the designated State agency
uses an order of selection in accordance with paragraph (5), estimates of the
number of individuals to be served under each priority category within the order;
and

(iii) the costs
of the services described in clause (i), including, if the designated State
agency uses an order of selection in accordance with paragraph (5), the service
costs for each priority category within the order.

(C) Goals and priorities

(i) In general

The State plan shall identify
the goals and priorities of the State in carrying out the program. The goals
and priorities shall be jointly developed, agreed to, and reviewed annually
by the designated State unit and the State Rehabilitation Council, if the State
has such a Council. Any revisions to the goals and priorities shall be jointly
agreed to by the designated State unit and the State Rehabilitation Council,
if the State has such a Council. The State plan shall provide that the State
shall submit to the Commissioner a report containing information regarding revisions
in the goals and priorities, for any year in which the State revises the goals
and priorities.

(ii)Basis

The State goals and priorities
shall be based on an analysis of-

(I) the comprehensive
assessment described in subparagraph (A), including any updates to the assessment;

(II) the performance
of the State on the standards and indicators established under section 106;
and

(III) other available
information on the operation and the effectiveness of the vocational rehabilitation
program carried out in the State, including any reports received from the State
Rehabilitation Council, under section 105(c) and the findings and recommendations
from monitoring activities conducted under section 107.

(iii)Service
and outcome goals for categories in order of selection

If the designated State
agency uses an order of selection in accordance with paragraph (5), the State
shall also identify in the State plan service and outcome goals and the time
within which these goals may be achieved for individuals in each priority category
within the order.

(D)Strategies

The State plan shall contain
a description of the strategies the State will use to address the needs identified
in the assessment conducted under subparagraph (A) and achieve the goals and
priorities identified in subparagraph (C), including-

(i) the methods
to be used to expand and improve services to individuals with disabilities,
including how a broad range of assistive technology services and assistive technology
devices will be provided to such individuals at each stage of the rehabilitation
process and how such services and devices will be provided to such individuals
on a statewide basis;

(ii) outreach procedures
to identify and serve individuals with disabilities who are minorities and individuals
with disabilities who have been unserved or underserved by the vocational rehabilitation
program;

(iii) where necessary,
the plan of the State for establishing, developing, or improving community rehabilitation
programs;

(iv) strategies
to improve the performance of the State with respect to the evaluation standards
and performance indicators established pursuant to section 106; and

(v) strategies
for assisting entities carrying out other components of the statewide workforce
investment system (other than the vocational rehabilitation program) in assisting
individuals with disabilities.

(E) Evaluation and reports
of progress

The State plan shall-

(i) include the
results of an evaluation of the effectiveness of the vocational rehabilitation
program, and a joint report by the designated State unit and the State Rehabilitation
Council, if the State has such a Council, to the Commissioner on the progress
made in improving the effectiveness from the previous year, which evaluation
and report shall include-

(I) an evaluation
of the extent to which the goals identified in subparagraph (C) were achieved;

(II) a description
of strategies that contributed to achieving the goals;

(III) to the extent
to which the goals were not achieved, a description of the factors that impeded
that achievement; and

(IV) an assessment
of the performance of the State on the standards and indicators established
pursuant to section 106; and

(ii) provide that
the designated State unit and the State Rehabilitation Council, if the State
has such a Council, shall jointly submit to the Commissioner an annual report
that contains the information described in clause (I).

(16) Public comment

The State plan shall-

(A) provide that
the designated State agency, prior to the adoption of any policies or procedures
governing the provision of vocational rehabilitation services under the State
plan (including making any amendment to such policies and procedures), shall
conduct public meetings throughout the State, after providing adequate notice
of the meetings, to provide the public, including individuals with disabilities,
an opportunity to comment on the policies or procedures, and actively consult
with the Director of the client assistance program carried out under section
112, and, as appropriate, Indian tribes, tribal organizations, and Native Hawaiian
organizations on the policies or procedures; and

(B) provide that
the designated State agency (or each designated State agency if 2 agencies are
designated) and any sole agency administering the plan in a political subdivision
of the State, shall take into account, in connection with matters of general
policy arising in the administration of the plan, the views of-

(i) individuals
and groups of individuals who are recipients of vocational rehabilitation services,
or in appropriate cases, the individuals' representatives;

(ii) personnel
working in programs that provide vocational rehabilitation services to individuals
with disabilities;

(iii) providers
of vocational rehabilitation services to individuals with disabilities;

(iv) the director
of the client assistance program; and

(v) the State Rehabilitation
Council, if the State has such a Council.

(17) Use of funds for
construction of facilities

The State plan shall provide
that if, under special circumstances, the State plan includes provisions for
the construction of facilities for community rehabilitation programs-

(A) the Federal
share of the cost of construction for the facilities for a fiscal year will
not exceed an amount equal to 10 percent of the State's allotment under section
110 for such year;

(B) the provisions
of section 306 (as in effect on the day before the date of enactment of the
Rehabilitation Act Amendments of 1998) shall be applicable to such construction
and such provisions shall be deemed to apply to such construction; and

(C) there shall
be compliance with regulations the Commissioner shall prescribe designed to
assure that no State will reduce its efforts in providing other vocational rehabilitation
services (other than for the establishment of facilities for community rehabilitation
programs) because the plan includes such provisions for construction.

(18)Innovation
and expansion activities

The State plan shall-

(A) include an
assurance that the State will reserve and use a portion of the funds allotted
to the State under section 110-

(i) for the development
and implementation of innovative approaches to expand and improve the provision
of vocational rehabilitation services to individuals with disabilities under
this title, particularly individuals with the most significant disabilities,
consistent with the findings of the statewide assessment and goals and priorities
of the State as described in paragraph (15); and

(ii) to support
the funding of-

(I) the State Rehabilitation
Council, if the State has such a Council, consistent with the plan prepared
under section 105(d)(1); and

(II) the Statewide
Independent Living Council, consistent with the plan prepared under section
705(e)(1);

(B) include a description
of how the reserved funds will be utilized; and

(C) provide that
the State shall submit to the Commissioner an annual report containing a description
of how the reserved funds will be utilized.

(19) Choice

The State plan shall include
an assurance that applicants and eligible individuals or, as appropriate, the
applicants' representatives or individuals' representatives, will be provided
information and support services to assist the applicants and individuals in
exercising informed choice throughout the rehabilitation process, consistent
with the provisions of section 102(d).

(20) Information and referral
services

(A)In general

The State plan shall include
an assurance that the designated State agency will implement an information
and referral system adequate to ensure that individuals with disabilities will
be provided accurate vocational rehabilitation information and guidance, using
appropriate modes of communication, to assist such individuals in preparing
for, securing, retaining, or regaining employment, and will be appropriately
referred to Federal and State programs (other than the vocational rehabilitation
program carried out under this title), including other components of the statewide
workforce investment system in the State.

(B)Referrals

An appropriate referral
made through the system shall-

(i) be to the Federal
or State programs, including programs carried out by other components of the
statewide workforce investment system in the State, best suited to address the
specific employment needs of an individual with a disability; and

(ii) include, for
each of these programs, provision to the individual of-

(I) a notice of
the referral by the designated State agency to the agency carrying out the program;

(II) information
identifying a specific point of contact within the agency carrying out the program;
and

(III) information
and advice regarding the most suitable services to assist the individual to
prepare for, secure, retain, or regain employment.

(I) is responsible
under State law for operating, or overseeing the operation of, the vocational
rehabilitation program in the State;

(II) is consumer-controlled
by persons who-

(aa) are individuals
with physical or mental impairments that substantially limit major life activities;
and

(bb) represent
individuals with a broad range of disabilities, unless the designated State
unit under the direction of the commission is the State agency for individuals
who are blind;

(III) includes
family members, advocates, or other representatives, of individuals with mental
impairments; and

(IV) undertakes
the functions set forth in section 105(c)(4); or

(ii) the State
has established a State Rehabilitation Council that meets the criteria set forth
in section 105 and the designated State unit-

(I) in accordance
with paragraph (15), jointly develops, agrees to, and reviews annually State
goals and priorities, and jointly submits annual reports of progress with the
Council;

(II) regularly consults
with the Council regarding the development, implementation, and revision of
State policies and procedures of general applicability pertaining to the provision
of vocational rehabilitation services;

(III) includes in
the State plan and in any revision to the State plan, a summary of input provided
by the Council, including recommendations from the annual report of the Council
described in section 105(c)(5), the review and analysis of consumer satisfaction
described in section 105(c)(4), and other reports prepared by the Council, and
the response of the designated State unit to such input and recommendations,
including explanations for rejecting any input or recommendation; and

(IV) transmits
to the Council-

(aa) all plans,
reports, and other information required under this title to be submitted to
the Secretary;

(bb) all policies,
and information on all practices and procedures, of general applicability provided
to or used by rehabilitation personnel in carrying out this title; and

(cc) copies of
due process hearing decisions issued under this title, which shall be transmitted
in such a manner as to ensure that the identity of the participants in the hearings
is kept confidential.

(B) More than 1 designated
state agency

In the case of a State
that, under section 101(a)(2), designates a State agency to administer the part
of the State plan under which vocational rehabilitation services are provided
for individuals who are blind (or to supervise the administration of such part
by a local agency) and designates a separate State agency to administer the
rest of the State plan, the State shall either establish a State Rehabilitation
Council for each of the 2 agencies that does not meet the requirements in subparagraph
(A)(i), or establish 1 State Rehabilitation Council for both agencies if neither
agency meets the requirements of subparagraph (A)(i).

(22)Supported
employment state plan supplement

The State plan shall include
an assurance that the State has an acceptable plan for carrying out part B of
title VI, including the use of funds under that part to supplement funds made
available under part B of this title to pay for the cost of services leading
to supported employment.

(23) Annual updates

The plan shall include
an assurance that the State will submit to the Commissioner reports containing
annual updates of the information required under paragraph (7) (relating to
a comprehensive system of personnel development) and any other updates of the
information required under this section that are requested by the Commissioner,
and annual reports as provided in paragraphs (15) (relating to assessments,
estimates, goals and priorities, and reports of progress) and (18) (relating
to innovation and expansion), at such time and in such manner as the Secretary
may determine to be appropriate.

(24)Certain
contracts and cooperative agreements

(A)Contracts
with for-profit organizations

The State plan shall provide
that the designated State agency has the authority to enter into contracts with
for-profit organizations for the purpose of providing, as vocational rehabilitation
services, on-the-job training and related programs for individuals with disabilities
under part A of title VI, upon a determination by such agency that such for-profit
organizations are better qualified to provide such rehabilitation services than
nonprofit agencies and organizations.

(B)Cooperative
agreements with private nonprofit organizations

The State plan shall describe the manner in which cooperative agreements with
private nonprofit vocational rehabilitation service providers will be established.

(b) Approval; Disapproval of the State Plan

(1) Approval

The Commissioner shall
approve any plan that the Commissioner finds fulfills the conditions specified
in this section, and shall disapprove any plan that does not fulfill such conditions.

(2) Disapproval

Prior to disapproval of
the State plan, the Commissioner shall notify the State of the intention to
disapprove the plan and shall afford the State reasonable notice and opportunity
for a hearing.

Sec. 102.Eligibility
and Individualized Plan for Employment

(a)Eligibility

(1)Criterion
for eligibility

An individual is eligible
for assistance under this title if the individual-

For purposes of this section,
an individual shall be presumed to be an individual that can benefit in terms
of an employment outcome from vocational rehabilitation services under section
7(20)(A), unless the designated State unit involved can demonstrate by clear
and convincing evidence that such individual is incapable of benefiting in terms
of an employment outcome from vocational rehabilitation services due to the
severity of the disability of the individual.

(B)Methods

In making the demonstration
required under subparagraph (A), the designated State unit shall explore the
individual's abilities, capabilities, and capacity to perform in work situations,
through the use of trial work experiences, as described in section 7(2)(D),
with appropriate supports provided through the designated State unit, except
under limited circumstances when an individual can not take advantage of such
experiences. Such experiences shall be of sufficient variety and over a sufficient
period of time to determine the eligibility of the individual or to determine
the existence of clear and convincing evidence that the individual is incapable
of benefiting in terms of an employment outcome from vocational rehabilitation
services due to the severity of the disability of the individual.

(3)Presumption
of eligibility

(A)In general

For purposes of this section,
an individual who has a disability or is blind as determined pursuant to title
II or title XVI of the Social Security Act (42 U.S.C. 401 et seq. and 1381 et
seq.) shall be-

(i) considered to
be an individual with a significant disability under section 7(21)(A); and

(ii) presumed to
be eligible for vocational rehabilitation services under this title (provided
that the individual intends to achieve an employment outcome consistent with
the unique strengths, resources, priorities, concerns, abilities, capabilities,
interests, and informed choice of the individual) unless the designated State
unit involved can demonstrate by clear and convincing evidence that such individual
is incapable of benefiting in terms of an employment outcome from vocational
rehabilitation services due to the severity of the disability of the individual
in accordance with paragraph (2).

(B)Construction

Nothing in this paragraph
shall be construed to create an entitlement to any vocational rehabilitation
service.

(4)Use of existing
information

(A)In general

To the maximum extent appropriate
and consistent with the requirements of this part, for purposes of determining
the eligibility of an individual for vocational rehabilitation services under
this title and developing the individualized plan for employment described in
subsection (b) for the individual, the designated State unit shall use information
that is existing and current (as of the date of the determination of eligibility
or of the development of the individualized plan for employment), including
information available from other programs and providers, particularly information
used by education officials and the Social Security Administration, information
provided by the individual and the family of the individual, and information
obtained under the assessment for determining eligibility and vocational rehabilitation
needs.

(B)Determinations
by officials of other agencies

Determinations made by
officials of other agencies, particularly education officials described in section
101(a)(11)(D), regarding whether an individual satisfies 1 or more factors relating
to whether an individual is an individual with a disability under section 7(20)(A)
or an individual with a significant disability under section 7(21)(A) shall
be used, to the extent appropriate and consistent with the requirements of this
part, in assisting the designated State unit in making such determinations.

(C)Basis

The determination of eligibility
for vocational rehabilitation services shall be based on-

(i) the review of
existing data described in section 7(2)(A)(i); and

(ii) to the extent
that such data is unavailable or insufficient for determining eligibility, the
provision of assessment activities described in section 7(2)(A)(ii).

(5)Determination
of ineligibility

If an individual who applies
for services under this title is determined, based on the review of existing
data and, to the extent necessary, the assessment activities described in section
7(2)(A)(ii), not to be eligible for the services, or if an eligible individual
receiving services under an individualized plan for employment is determined
to be no longer eligible for the services-

(A) the ineligibility
determination involved shall be made only after providing an opportunity for
full consultation with the individual or, as appropriate, the individual's representative;

(B) the individual
or, as appropriate, the individual's representative, shall be informed in writing
(supplemented as necessary by other appropriate modes of communication consistent
with the informed choice of the individual) of the ineligibility determination,
including-

(i) the reasons
for the determination; and

(ii) a description
of the means by which the individual may express, and seek a remedy for, any
dissatisfaction with the determination, including the procedures for review
by an impartial hearing officer under subsection (c);

(C) the individual
shall be provided with a description of services available from the client assistance
program under section 112 and information on how to contact that program; and

(D) any ineligibility
determination that is based on a finding that the individual is incapable of
benefiting in terms of an employment outcome shall be reviewed-

(i) within 12 months;
and

(ii) thereafter,
if such a review is requested by the individual or, if appropriate, by the individual's
representative.

(6)Timeframe
for making an eligibility determination

The designated State unit
shall determine whether an individual is eligible for vocational rehabilitation
services under this title within a reasonable period of time, not to exceed
60 days, after the individual has submitted an application for the services
unless-

(A) exceptional
and unforeseen circumstances beyond the control of the designated State unit
preclude making an eligibility determination within 60 days and the designated
State unit and the individual agree to a specific extension of time; or

(B) the designated
State unit is exploring an individual's abilities, capabilities, and capacity
to perform in work situations under paragraph (2)(B).

(b)Development
of an Individualized Plan for Employment

(1)Options for
developing an individualized plan for employment

If an individual is determined
to be eligible for vocational rehabilitation services as described in subsection
(a), the designated State unit shall complete the assessment for determining
eligibility and vocational rehabilitation needs, as appropriate, and shall provide
the eligible individual or the individual's representative, in writing and in
an appropriate mode of communication, with information on the individual's options
for developing an individualized plan for employment, including-

(A) information
on the availability of assistance, to the extent determined to be appropriate
by the eligible individual, from a qualified vocational rehabilitation counselor
in developing all or part of the individualized plan for employment for the
individual, and the availability of technical assistance in developing all or
part of the individualized plan for employment for the individual;

(B) a description
of the full range of components that shall be included in an individualized
plan for employment;

(C) as appropriate-

(i) an explanation
of agency guidelines and criteria associated with financial commitments concerning
an individualized plan for employment;

(ii) additional
information the eligible individual requests or the designated State unit determines
to be necessary; and

(iii) information
on the availability of assistance in completing designated State agency forms
required in developing an individualized plan for employment; and

(D)(i) a description
of the rights and remedies available to such an individual including, if appropriate,
recourse to the processes set forth in subsection (c); and

(ii) a description
of the availability of a client assistance program established pursuant to section
112 and information about how to contact the client assistance program.

(2)Mandatory
procedures

(A)Written document

An individualized plan
for employment shall be a written document prepared on forms provided by the
designated State unit.

(B)Informed
choice

An individualized plan
for employment shall be developed and implemented in a manner that affords eligible
individuals the opportunity to exercise informed choice in selecting an employment
outcome, the specific vocational rehabilitation services to be provided under
the plan, the entity that will provide the vocational rehabilitation services,
and the methods used to procure the services, consistent with subsection (d).

(C)Signatories

An individualized plan
for employment shall be-

(i) agreed to, and
signed by, such eligible individual or, as appropriate, the individual's representative;
and

(ii) approved and
signed by a qualified vocational rehabilitation counselor employed by the designated
State unit.

(D)Copy

A copy of the individualized
plan for employment for an eligible individual shall be provided to the individual
or, as appropriate, to the individual's representative, in writing and, if appropriate,
in the native language or mode of communication of the individual or, as appropriate,
of the individual's representative.

(E)Review and
amendment

The individualized plan
for employment shall be-

(i) reviewed at
least annually by-

(I) a qualified
vocational rehabilitation counselor; and

(II) the eligible
individual or, as appropriate, the individual's representative; and

(ii) amended, as
necessary, by the individual or, as appropriate, the individual's representative,
in collaboration with a representative of the designated State agency or a qualified
vocational rehabilitation counselor (to the extent determined to be appropriate
by the individual), if there are substantive changes in the employment outcome,
the vocational rehabilitation services to be provided, or the service providers
of the services (which amendments shall not take effect until agreed to and
signed by the eligible individual or, as appropriate, the individual's representative,
and by a qualified vocational rehabilitation counselor employed by the designated
State unit).

(3)Mandatory
components of an individualized plan for employment

Regardless of the approach
selected by an eligible individual to develop an individualized plan for employment,
an individualized plan for employment shall, at a minimum, contain mandatory
components consisting of-

(A) a description
of the specific employment outcome that is chosen by the eligible individual,
consistent with the unique strengths, resources, priorities, concerns, abilities,
capabilities, interests, and informed choice of the eligible individual, and,
to the maximum extent appropriate, results in employment in an integrated setting;

(B)(i) a description
of the specific vocational rehabilitation services that are-

(I) needed to achieve
the employment outcome, including, as appropriate, the provision of assistive
technology devices and assistive technology services, and personal assistance
services, including training in the management of such services; and

(II) provided in
the most integrated setting that is appropriate for the service involved and
is consistent with the informed choice of the eligible individual; and

(ii) timelines for
the achievement of the employment outcome and for the initiation of the services;

(C) a description of the entity chosen by the eligible individual or,
as appropriate, the individual's representative, that will provide the vocational
rehabilitation services, and the methods used to procure such services;

(D) a description
of criteria to evaluate progress toward achievement of the employment outcome;

(E) the terms and
conditions of the individualized plan for employment, including, as appropriate,
information describing-

(i) the responsibilities
of the designated State unit;

(ii) the responsibilities
of the eligible individual, including-

(I) the responsibilities
the eligible individual will assume in relation to the employment outcome of
the individual;

(II) if applicable,
the participation of the eligible individual in paying for the costs of the
plan; and

(III) the responsibility
of the eligible individual with regard to applying for and securing comparable
benefits as described in section 101(a)(8); and

(iii) the responsibilities
of other entities as the result of arrangements made pursuant to comparable
services or benefits requirements as described in section 101(a)(8);

(F) for an eligible
individual with the most significant disabilities for whom an employment outcome
in a supported employment setting has been determined to be appropriate, information
identifying-

(i) the extended
services needed by the eligible individual; and

(ii) the source
of extended services or, to the extent that the source of the extended services
cannot be identified at the time of the development of the individualized plan
for employment, a description of the basis for concluding that there is a reasonable
expectation that such source will become available; and

(G) as determined
to be necessary, a statement of projected need for post-employment services.

(c)Procedures

(1)In general

Each State shall establish
procedures for mediation of, and procedures for review through an impartial
due process hearing of, determinations made by personnel of the designated State
unit that affect the provision of vocational rehabilitation services to applicants
or eligible individuals.

(2)Notification

(A)Rights and
assistance

The procedures shall provide
that an applicant or an eligible individual or, as appropriate, the applicant's
representative or individual's representative shall be notified of-

(i) the right to
obtain review of determinations described in paragraph (1) in an impartial due
process hearing under paragraph (5);

(ii) the right to
pursue mediation with respect to the determinations under paragraph (4); and

(iii) the availability
of assistance from the client assistance program under section 112.

(B)Timing

Such notification shall
be provided in writing-

(i) at the time
an individual applies for vocational rehabilitation services provided under
this title;

(ii) at the time
the individualized plan for employment for the individual is developed; and

(iii) upon reduction,
suspension, or cessation of vocational rehabilitation services for the individual.

(3)Evidence
and representation

The procedures required
under this subsection shall, at a minimum-

(A) provide an opportunity
for an applicant or an eligible individual, or, as appropriate, the applicant's
representative or individual's representative, to submit at the mediation session
or hearing evidence and information to support the position of the applicant
or eligible individual; and

(B) include provisions
to allow an applicant or an eligible individual to be represented in the mediation
session or hearing by a person selected by the applicant or eligible individual.

(4)Mediation

(A) Procedures

Each State shall ensure
that procedures are established and implemented under this subsection to allow
parties described in paragraph (1) to disputes involving any determination described
in paragraph (1) to resolve such disputes through a mediation process that,
at a minimum, shall be available whenever a hearing is requested under this
subsection.

(B) Requirements

Such procedures shall ensure
that the mediation process-

(i) is voluntary
on the part of the parties;

(ii) is not used
to deny or delay the right of an individual to a hearing under this subsection,
or to deny any other right afforded under this title; and

(iii) is conducted
by a qualified and impartial mediator who is trained in effective mediation
techniques.

(C)List of mediators

The State shall maintain
a list of individuals who are qualified mediators and knowledgeable in laws
(including regulations) relating to the provision of vocational rehabilitation
services under this title, from which the mediators described in subparagraph
(B) shall be selected.

(D)Cost

The State shall bear the
cost of the mediation process.

(E)Scheduling

Each session in the mediation
process shall be scheduled in a timely manner and shall be held in a location
that is convenient to the parties to the dispute.

(F)Agreement

An agreement reached by
the parties to the dispute in the mediation process shall be set forth in a
written mediation agreement.

(G)Confidentiality

Discussions that occur
during the mediation process shall be confidential and may not be used as evidence
in any subsequent due process hearing or civil proceeding. The parties to the
mediation process may be required to sign a confidentiality pledge prior to
the commencement of such process.

(H)Construction

Nothing in this subsection
shall be construed to preclude the parties to such a dispute from informally
resolving the dispute prior to proceedings under this paragraph or paragraph
(5), if the informal process used is not used to deny or delay the right of
the applicant or eligible individual to a hearing under this subsection or to
deny any other right afforded under this title.

(5)Hearings

(A) Officer

A due process hearing described
in paragraph (2) shall be conducted by an impartial hearing officer who shall
issue a decision based on the provisions of the approved State plan, this Act
(including regulations implementing this Act), and State regulations and policies
that are consistent with the Federal requirements specified in this title. The
officer shall provide the decision in writing to the applicant or eligible individual,
or, as appropriate, the applicant's representative or individual's representative,
and to the designated State unit.

(B) List

The designated State unit
shall maintain a list of qualified impartial hearing officers who are knowledgeable
in laws (including regulations) relating to the provision of vocational rehabilitation
services under this title from which the officer described in subparagraph (A)
shall be selected. For the purposes of maintaining such list, impartial hearing
officers shall be identified jointly by-

(i) the designated
State unit; and

(ii) members of
the Council or commission, as appropriate, described in section 101(a)(21).

(C)Selection

Such an impartial hearing
officer shall be selected to hear a particular case relating to a determination-

(i) on a random
basis; or

(ii) by agreement
between-

(I) the Director
of the designated State unit and the individual with a disability; or

(II) in appropriate
cases, the Director and the individual's representative.

(D)Procedures
for seeking review

A State may establish procedures
to enable a party involved in a hearing under this paragraph to seek an impartial
review of the decision of the hearing officer under subparagraph (A) by-

(i) the chief official
of the designated State agency if the State has established both a designated
State agency and a designated State unit under section 101(a)(2); or

(ii) an official
from the office of the Governor.

(E)Review request

If the State establishes
impartial review procedures under subparagraph (D), either party may request
the review of the decision of the hearing officer within 20 days after the decision.

(F)Reviewing
official

The reviewing official
described in subparagraph (D) shall-

(i) in conducting
the review, provide an opportunity for the submission of additional evidence
and information relevant to a final decision concerning the matter under review;

(ii) not overturn
or modify the decision of the hearing officer, or part of the decision, that
supports the position of the applicant or eligible individual unless the reviewing
official concludes, based on clear and convincing evidence, that the decision
of the impartial hearing officer is clearly erroneous on the basis of being
contrary to the approved State plan, this Act (including regulations implementing
this Act) or any State regulation or policy that is consistent with the Federal
requirements specified in this title; and

(iii) make a final
decision with respect to the matter in a timely manner and provide such decision
in writing to the applicant or eligible individual, or, as appropriate, the
applicant's representative or individual's representative, and to the designated
State unit, including a full report of the findings and the grounds for such
decision.

(G)Finality
of hearing decision

A decision made after a
hearing under subparagraph (A) shall be final, except that a party may request
an impartial review if the State has established procedures for such review
under subparagraph (D) and a party involved in a hearing may bring a civil action
under subparagraph (J).

(H)Finality
of review

A decision made under subparagraph
(F) shall be final unless such a party brings a civil action under subparagraph
(J).

(I)Implementation

If a party brings a civil
action under subparagraph (J) to challenge a final decision of a hearing officer
under subparagraph (A) or to challenge a final decision of a State reviewing
official under subparagraph (F), the final decision involved shall be implemented
pending review by the court.

(J)Civil action

(i)In general

Any party aggrieved by
a final decision described in subparagraph (I), may bring a civil action for
review of such decision. The action may be brought in any State court of competent
jurisdiction or in a district court of the United States of competent jurisdiction
without regard to the amount in controversy.

(ii)Procedure

In any action brought under
this subparagraph, the court-

(I) shall receive
the records relating to the hearing under subparagraph (A) and the records relating
to the State review under subparagraphs (D) through (F), if applicable;

(II) shall hear
additional evidence at the request of a party to the action; and

(III) basing the
decision of the court on the preponderance of the evidence, shall grant such
relief as the court determines to be appropriate.

(6)Hearing board

(A)In general

A fair hearing board, established
by a State before January 1, 1985, and authorized under State law to review
determinations or decisions under this Act, is authorized to carry out the responsibilities
of the impartial hearing officer under this subsection.

(B)Application

The provisions of paragraphs
(1), (2), and (3) that relate to due process hearings do not apply, and paragraph
(5) (other than subparagraph (J)) does not apply, to any State to which subparagraph
(A) applies.

(7)Impact on
provision of services

Unless the individual with
a disability so requests, or, in an appropriate case, the individual's representative,
so requests, pending a decision by a mediator, hearing officer, or reviewing
officer under this subsection, the designated State unit shall not institute
a suspension, reduction, or termination of services being provided for the individual,
including evaluation and assessment services and plan development, unless such
services have been obtained through misrepresentation, fraud, collusion, or
criminal conduct on the part of the individual, or the individual's representative.

(8)Information
collection and report

(A)In general

The Director of the designated
State unit shall collect information described in subparagraph (B) and prepare
and submit to the Commissioner a report containing such information. The Commissioner
shall prepare a summary of the information furnished under this paragraph and
include the summary in the annual report submitted under section 13. The Commissioner
shall also collect copies of the final decisions of impartial hearing officers
conducting hearings under this subsection and State officials conducting reviews
under this subsection.

(B)Information

The information required
to be collected under this subsection includes-

(i) a copy of the
standards used by State reviewing officials for reviewing decisions made by
impartial hearing officers under this subsection;

(ii) information
on the number of hearings and reviews sought from the impartial hearing officers
and the State reviewing officials, including the type of complaints and the
issues involved;

(iii) information
on the number of hearing decisions made under this subsection that were not
reviewed by the State reviewing officials; and

(iv) information
on the number of the hearing decisions that were reviewed by the State reviewing
officials, and, based on such reviews, the number of hearing decisions that
were-

(I) sustained in
favor of an applicant or eligible individual;

(II) sustained in
favor of the designated State unit;

(III) reversed in
whole or in part in favor of the applicant or eligible individual; and

(IV) reversed in
whole or in part in favor of the designated State unit.

(C)Confidentiality

The confidentiality of
records of applicants and eligible individuals maintained by the designated
State unit shall not preclude the access of the Commissioner to those records
for the purposes described in subparagraph (A).

(d)Policies
and Procedures

Each designated State agency,
in consultation with the State Rehabilitation Council, if the State has such
a council, shall, consistent with section 100(a)(3)(C), develop and implement
written policies and procedures that enable each individual who is an applicant
for or eligible to receive vocational rehabilitation services under this title
to exercise informed choice throughout the vocational rehabilitation process
carried out under this title, including policies and procedures that require
the designated State agency-

(1) to inform each
such applicant and eligible individual (including students with disabilities
who are making the transition from programs under the responsibility of an educational
agency to programs under the responsibility of the designated State unit), through
appropriate modes of communication, about the availability of, and opportunities
to exercise, informed choice, including the availability of support services
for individuals with cognitive or other disabilities who require assistance
in exercising informed choice, throughout the vocational rehabilitation process;

(2) to assist applicants
and eligible individuals in exercising informed choice in decisions related
to the provision of assessment services under this title;

(3) to develop and
implement flexible procurement policies and methods that facilitate the provision
of services, and that afford eligible individuals meaningful choices among the
methods used to procure services, under this title;

(4) to provide or
assist eligible individuals in acquiring information that enables those individuals
to exercise informed choice under this title in the selection of-

(D) the employment
setting and the settings in which the services will be provided; and

(E) the methods
available for procuring the services; and

(5) to ensure that
the availability and scope of informed choice provided under this section is
consistent with the obligations of the designated State agency under this title.

Sec. 103. Vocational Rehabilitation
Services

(a)Vocational
Rehabilitation Services for Individuals

Vocational rehabilitation
services provided under this title are any services described in an individualized
plan for employment necessary to assist an individual with a disability in preparing
for, securing, retaining, or regaining an employment outcome that is consistent
with the strengths, resources, priorities, concerns, abilities, capabilities,
interests, and informed choice of the individual, including-

(1) an assessment
for determining eligibility and vocational rehabilitation needs by qualified
personnel, including, if appropriate, an assessment by personnel skilled in
rehabilitation technology;

(2) counseling and
guidance, including information and support services to assist an individual
in exercising informed choice consistent with the provisions of section 102(d);

(3) referral and
other services to secure needed services from other agencies through agreements
developed under section 101(a)(11), if such services are not available under
this title;

(5) vocational and
other training services, including the provision of personal and vocational
adjustment services, books, tools, and other training materials, except that
no training services provided at an institution of higher education shall be
paid for with funds under this title unless maximum efforts have been made by
the designated State unit and the individual to secure grant assistance, in
whole or in part, from other sources to pay for such training;

(6) to the extent that financial support is not readily available from
a source (such as through health insurance of the individual or through comparable
services and benefits consistent with section 101(a)(8)(A)), other than the
designated State unit, diagnosis and treatment of physical and mental impairments,
including-

(A) corrective surgery
or therapeutic treatment necessary to correct or substantially modify a physical
or mental condition that constitutes a substantial impediment to employment,
but is of such a nature that such correction or modification may reasonably
be expected to eliminate or reduce such impediment to employment within a reasonable
length of time;

(B) necessary hospitalization
in connection with surgery or treatment;

(C) prosthetic and
orthotic devices;

(D) eyeglasses and
visual services as prescribed by qualified personnel who meet State licensure
laws and who are selected by the individual;

(E) special services
(including transplantation and dialysis), artificial kidneys, and supplies necessary
for the treatment of individuals with end-stage renal disease; and

(F) diagnosis and
treatment for mental and emotional disorders by qualified personnel who meet
State licensure laws;

(7) maintenance
for additional costs incurred while participating in an assessment for determining
eligibility and vocational rehabilitation needs or while receiving services
under an individualized plan for employment;

(8) transportation,
including adequate training in the use of public transportation vehicles and
systems, that is provided in connection with the provision of any other service
described in this section and needed by the individual to achieve an employment
outcome;

(9) on-the-job or
other related personal assistance services provided while an individual is receiving
other services described in this section;

(10) interpreter
services provided by qualified personnel for individuals who are deaf or hard
of hearing, and reader services for individuals who are determined to be blind,
after an examination by qualified personnel who meet State licensure laws;

(11) rehabilitation
teaching services, and orientation and mobility services, for individuals who
are blind;

(13) technical assistance
and other consultation services to conduct market analyses, develop business
plans, and otherwise provide resources, to the extent such resources are authorized
to be provided through the statewide workforce investment system, to eligible
individuals who are pursuing self-employment or telecommuting or establishing
a small business operation as an employment outcome;

(14) rehabilitation
technology, including telecommunications, sensory, and other technological aids
and devices;

(15) transition
services for students with disabilities, that facilitate the achievement of
the employment outcome identified in the individualized plan for employment;

(16) supported employment
services;

(17) services to
the family of an individual with a disability necessary to assist the individual
to achieve an employment outcome; and

(18) specific post-employment
services necessary to assist an individual with a disability to, retain, regain,
or advance in employment.

(b)Vocational
Rehabilitation Services for Groups of Individuals

Vocational rehabilitation
services provided for the benefit of groups of individuals with disabilities
may also include the following:

(1) In the case
of any type of small business operated by individuals with significant disabilities
the operation of which can be improved by management services and supervision
provided by the designated State agency, the provision of such services and
supervision, along or together with the acquisition by the designated State
agency of vending facilities or other equipment and initial stocks and supplies.

(2)(A) The establishment,
development, or improvement of community rehabilitation programs, including,
under special circumstances, the construction of a facility. Such programs shall
be used to provide services that promote integration and competitive employment.

(B) The provision
of other services, that promise to contribute substantially to the rehabilitation
of a group of individuals but that are not related directly to the individualized
plan for employment of any 1 individual with a disability.

(3) The use of telecommunications
systems (including telephone, television, satellite, radio, and other similar
systems) that have the potential for substantially improving delivery methods
of activities described in this section and developing appropriate programming
to meet the particular needs of individuals with disabilities.

(4)(A) Special services
to provide nonvisual access to information for individuals who are blind, including
the use of telecommunications, Braille, sound recordings, or other appropriate
media.

(B) Captioned television,
films, or video cassettes for individuals who are deaf or hard of hearing.

(C) Tactile materials
for individuals who are deaf-blind.

(D) Other special
services that provide information through tactile, vibratory, auditory, and
visual media.

(5) Technical assistance
and support services to businesses that are not subject to title I of the Americans
with Disabilities Act of 1990 (42 U.S.C. 12111 et seq.) and that are seeking
to employ individuals with disabilities.

(6) Consultative
and technical assistance services to assist educational agencies in planning
for the transition of students with disabilities from school to post-school
activities, including employment.

Sec. 104. Non-Federal share
for establishment of program or construction

For the purpose of determining
the amount of payments to States for carrying out part B (or to an Indian tribe
under part C), the non-Federal share, subject to such limitations and conditions
as may be prescribed in regulations by the Commissioner, shall include contributions
of funds made by any private agency, organization, or individual to a State
or local agency to assist in meeting the costs of establishment of a community
rehabilitation program or construction, under special circumstances, of a facility
for such a program, which would be regarded as State or local funds except for
the condition, imposed by the contributor, limiting use of such funds to establishment
of such a program or construction of such a facility.

Sec. 105. State Rehabilitation
Council

(a)Establishment

(1)In general

Except as provided in section
101(a)(21)(A)(i), to be eligible to receive financial assistance under this
title a State shall establish a State Rehabilitation Council (referred to in
this section as the "Council") in accordance with this section.

(2)Separate
agency for individuals who are blind

A State that designates
a State agency to administer the part of the State plan under which vocational
rehabilitation services are provided for individuals who are blind under section
101(a)(2)(A)(i) may establish a separate Council in accordance with this section
to perform the duties of such a Council with respect to such State agency.

(b)Composition
and Appointment

(1)Composition

(A)In general

Except in the case of a
separate Council established under subsection (a)(2), the Council shall be composed
of-

(i) at least one
representative of the Statewide Independent Living Council established under
section 705, which representative may be the chairperson or other designee of
the Council;

(ii) at least one
representative of a parent training and information center established pursuant
to section 682(a) of the Individuals with Disabilities Education Act (as added
by section 101 of the Individuals with Disabilities Education Act Amendments
of 1997; Public Law 105-17);

(iii) at least one
representative of the client assistance program established under section 112;

(iv) at least one
qualified vocational rehabilitation counselor, with knowledge of and experience
with vocational rehabilitation programs, who shall serve as an ex officio, nonvoting
member of the Council if the counselor is an employee of the designated State
agency;

(v) at least one
representative of community rehabilitation program service providers;

(I) individuals
with physical, cognitive, sensory, and mental disabilities; and

(II) individuals'
representatives of individuals with disabilities who have difficulty in representing
themselves or are unable due to their disabilities to represent themselves;

(viii) current or
former applicants for, or recipients of, vocational rehabilitation services;

(ix) in a State
in which one or more projects are carried out under section 121, at least one
representative of the directors of the projects;

(x) at least one
representative of the State educational agency responsible for the public education
of students with disabilities who are eligible to receive services under this
title and part B of the Individuals with Disabilities Education Act; and

(xi) at least one
representative of the State workforce investment board.

(B)Separate
council

In the case of a separate
Council established under subsection (a)(2), the Council shall be composed of-

(i) at least one
representative described in subparagraph (A)(i);

(ii) at least one
representative described in subparagraph (A)(ii);

(iii) at least one
representative described in subparagraph (A)(iii);

(iv) at least one
vocational rehabilitation counselor described in subparagraph (A)(iv), who shall
serve as described in such subparagraph;

(v) at least one
representative described in subparagraph (A)(v);

(vi) four representatives
described in subparagraph (A)(vi);

(vii) at least one
representative of a disability advocacy group representing individuals who are
blind;

(viii) at least
one individual's representative, of an individual who-

(I) is an individual
who is blind and has multiple disabilities; and

(II) has difficulty
in representing himself or herself or is unable due to disabilities to represent
himself or herself;

(ix) applicants
or recipients described in subparagraph (A)(viii);

(x) in a State described
in subparagraph (A)(ix), at least one representative described in such subparagraph;

(xi) at least one
representative described in subparagraph (A)(x); and

(xii) at least one
representative described in subparagraph (A)(xi).

(C)Exception

In the case of a separate
Council established under subsection (a)(2), any Council that is required by
State law, as in effect on the date of enactment of the Rehabilitation Act Amendments
of 1992, to have fewer than 15 members shall be deemed to be in compliance with
subparagraph (B) if the Council-

(i) meets the requirements
of subparagraph (B), other than the requirements of clauses (vi) and (ix) of
such subparagraph; and

(ii) includes at
least-

(I) one representative
described in subparagraph (B)(vi); and

(II) one applicant
or recipient described in subparagraph (B)(ix).

(2)Ex officio
member

The Director of the designated
State unit shall be an ex officio, nonvoting member of the Council.

(3)Appointment

Members of the Council
shall be appointed by the Governor. The Governor shall select members after
soliciting recommendations from representatives of organizations representing
a broad range of individuals with disabilities and organizations interested
in individuals with disabilities. In selecting members, the Governor shall consider,
to the greatest extent practicable, the extent to which minority populations
are represented on the Council.

(4)Qualifications

(A)In general

A majority of Council members
shall be persons who are-

(i) individuals
with disabilities described in section 7(20)(A); and

(ii) not employed
by the designated State unit.

(B)Separate
council

In the case of a separate
Council established under subsection (a)(2), a majority of Council members shall
be persons who are-

(i) blind; and

(ii) not employed
by the designated State unit.

(5)Chairperson

(A)In general

Except as provided in subparagraph
(B), the Council shall select a chairperson from among the membership of the
Council.

(B)Designation
by governor

In States in which the
chief executive officer does not have veto power pursuant to State law, the
Governor shall designate a member of the Council to serve as the chairperson
of the Council or shall require the Council to so designate such a member.

(6)Terms of
appointment

(A)Length of
term

Each member of the Council
shall serve for a term of not more than 3 years, except that-

(i) a member appointed
to fill a vacancy occurring prior to the expiration of the term for which a
predecessor was appointed, shall be appointed for the remainder of such term;
and

(ii) the terms of
service of the members initially appointed shall be (as specified by the Governor)
for such fewer number of years as will provide for the expiration of terms on
a staggered basis.

(B)Number of
terms

No member of the Council,
other than a representative described in clause (iii) or (ix) of paragraph (1)(A),
or clause (iii) or (x) of paragraph (1)(B), may serve more than two consecutive
full terms.

(7)Vacancies

(A)In general

Except as provided in subparagraph
(B), any vacancy occurring in the membership of the Council shall be filled
in the same manner as the original appointment. The vacancy shall not affect
the power of the remaining members to execute the duties of the Council.

(B)Delegation

The Governor may delegate
the authority to fill such a vacancy to the remaining members of the Council
after making the original appointment.

(c)Functions
of Council

The Council shall, after
consulting with the State workforce investment board-

(1) review, analyze,
and advise the designated State unit regarding the performance of the responsibilities
of the unit under this title, particularly responsibilities relating to-

(A) eligibility
(including order of selection);

(B) the extent,
scope, and effectiveness of services provided; and

(C) functions performed
by State agencies that affect or that potentially affect the ability of individuals
with disabilities in achieving employment outcomes under this title;

(2) in partnership
with the designated State unit-

(A) develop, agree
to, and review State goals and priorities in accordance with section 101(a)(15)(C);
and

(B) evaluate the
effectiveness of the vocational rehabilitation program and submit reports of
progress to the Commissioner in accordance with section 101(a)(15)(E);

(3) advise the designated
State agency and the designated State unit regarding activities authorized to
be carried out under this title, and assist in the preparation of the State
plan and amendments to the plan, applications, reports, needs assessments, and
evaluations required by this title;

(4) to the extent
feasible, conduct a review and analysis of the effectiveness of, and consumer
satisfaction with-

(A) the functions
performed by the designated State agency;

(B) vocational rehabilitation
services provided by State agencies and other public and private entities responsible
for providing vocational rehabilitation services to individuals with disabilities
under this Act; and

(C) employment outcomes
achieved by eligible individuals receiving services under this title, including
the availability of health and other employment benefits in connection with
such employment outcomes;

(5) prepare and
submit an annual report to the Governor and the Commissioner on the status of
vocational rehabilitation programs operated within the State, and make the report
available to the public;

(6) to avoid duplication
of efforts and enhance the number of individuals served, coordinate activities
with the activities of other councils within the State, including the Statewide
Independent Living Council established under section 705, the advisory panel
established under section 612(a)(21) of the Individual with Disabilities Education
Act (as amended by section 101 of the Individuals with Disabilities Education
Act Amendments of 1997; Public Law 105-17), the State Developmental Disabilities
Council described in section 124 of the Developmental Disabilities Assistance
and Bill of Rights Act (42 U.S.C. 6024), the State mental health planning council
established under section 1914(a) of the Public Health Service Act (42 U.S.C.
300x-4(a)), and the State workforce investment board;

(7) provide for
coordination and the establishment of working relationships between the designated
State agency and the Statewide Independent Living Council and centers for independent
living within the State; and

(8) perform such
other functions, consistent with the purpose of this title, as the State Rehabilitation
Council determines to be appropriate, that are comparable to the other functions
performed by the Council.

(d)Resources

(1)Plan

The Council shall prepare,
in conjunction with the designated State unit, a plan for the provision of such
resources, including such staff and other personnel, as may be necessary and
sufficient to carry out the functions of the Council under this section. The
resource plan shall, to the maximum extent possible, rely on the use of resources
in existence during the period of implementation of the plan.

(2)Resolution
of disagreements

To the extent that there
is a disagreement between the Council and the designated State unit in regard
to the resources necessary to carry out the functions of the Council as set
forth in this section, the disagreement shall be resolved by the Governor consistent
with paragraph (1).

(3)Supervision
and evaluation

Each Council shall, consistent
with State law, supervise and evaluate such staff and other personnel as may
be necessary to carry out its functions under this section.

(4)Personnel
conflict of interest

While assisting the Council
in carrying out its duties, staff and other personnel shall not be assigned
duties by the designated State unit or any other agency or office of the State,
that would create a conflict of interest.

(e)Conflict
of Interest

No member of the Council
shall cast a vote on any matter that would provide direct financial benefit
to the member or otherwise give the appearance of a conflict of interest under
State law.

(f)Meetings

The Council shall convene
at least 4 meetings a year in such places as it determines to be necessary to
conduct Council business and conduct such forums or hearings as the Council
considers appropriate. The meetings, hearings, and forums shall be publicly
announced. The meetings shall be open and accessible to the general public unless
there is a valid reason for an executive session.

(g)Compensation
and Expenses

The Council may use funds
allocated to the Council by the designated State unit under this title (except
for funds appropriated to carry out the client assistance program under section
112 and funds reserved pursuant to section 110(c) to carry out part C) to reimburse
members of the Council for reasonable and necessary expenses of attending Council
meetings and performing Council duties (including child care and personal assistance
services), and to pay compensation to a member of the Council, if such member
is not employed or must forfeit wages from other employment, for each day the
member is engaged in performing the duties of the Council.

(h)Hearings
and Forums

The Council is authorized to hold such hearings and forums as the Council may
determine to be necessary to carry out the duties of the Council.

Sec. 106. Evaluation Standards and Performance Indicators

(a)Establishment

(1)In general

(A)Establishment
of standards and indicators

The Commissioner shall,
not later than July 1, 1999, establish and publish evaluation standards and
performance indicators for the vocational rehabilitation program carried out
under this title.

(B)Review and
revision

Effective July 1, 1999,
the Commissioner shall review and, if necessary, revise the evaluation standards
and performance indicators every 3 years. Any revisions of the standards and
indicators shall be developed with input from State vocational rehabilitation
agencies, related professional and consumer organizations, recipients of vocational
rehabilitation services, and other interested parties. Any revisions of the
standards and indicators shall be subject to the publication, review, and comment
provisions of paragraph (3).

(C)Bases

Effective July 1, 1999,
to the maximum extent practicable, the standards and indicators shall be consistent
with the core indicators of performance established under section 136(b) of
the Workforce Investment Act of 1998.

(2)Measures

The standards and indicators
shall include outcome and related measures of program performance that facilitate
the accomplishment of the purpose and policy of this title.

(3)Comment

The standards and indicators shall be developed with input from State vocational
rehabilitation agencies, related professional and consumer organizations, recipients
of vocational rehabilitation services, and other interested parties. The Commissioner
shall publish in the Federal Register a notice of intent to regulate regarding
the development of proposed standards and indicators. Proposed standards and
indicators shall be published in the Federal Register for review and comment.
Final standards and indicators shall be published in the Federal Register.

(b)Compliance

(1)State reports

In accordance with regulations
established by the Secretary, each State shall report to the Commissioner after
the end of each fiscal year the extent to which the State is in compliance with
the standards and indicators.

(2)Program improvement

(A)Plan

If the Commissioner determines
that the performance of any State is below established standards, the Commissioner
shall provide technical assistance to the State, and the State and the Commissioner
shall jointly develop a program improvement plan outlining the specific actions
to be taken by the State to improve program performance.

(B)Review

The Commissioner shall-

(i) review the program
improvement efforts of the State on a biannual basis and, if necessary, request
the State to make further revisions to the plan to improve performance; and

(ii) continue to
conduct such reviews and request such revisions until the State sustains satisfactory
performance over a period of more than 1 year.

(c)Withholding

If the Commissioner determines
that a State whose performance falls below the established standards has failed
to enter into a program improvement plan, or is not complying substantially
with the terms and conditions of such a program improvement plan, the Commissioner
shall, consistent with subsections (c) and (d) of section 107, reduce or make
no further payments to the State under this program, until the State has entered
into an approved program improvement plan, or satisfies the Commissioner that
the State is complying substantially with the terms and conditions of such a
program improvement plan, as appropriate.

(d)Report to
Congress

Beginning in fiscal year
1999, the Commissioner shall include in each annual report to the Congress under
section 13 an analysis of program performance, including relative State performance,
based on the standards and indicators.

Sec. 107. Monitoring and
Review

(a)In General

(1)Duties

In carrying out the duties
of the Commissioner under this title, the Commissioner shall-

(A) provide for
the annual review and periodic onsite monitoring of programs under this title;
and

(B) determine whether,
in the administration of the State plan, a State is complying substantially
with the provisions of such plan and with evaluation standards and performance
indicators established under section 106.

(2)Procedures
for reviews

In conducting reviews under
this section the Commissioner shall consider, at a minimum-

(A) State policies
and procedures;

(B) guidance materials;

(C) decisions resulting
from hearings conducted in accordance with due process;

(D) State goals
established under section 101(a)(15) and the extent to which the State has achieved
such goals;

(E) plans and reports
prepared under section 106(b);

(F) consumer satisfaction
reviews and analyses described in section 105(c)(4);

(G) information
provided by the State Rehabilitation Council established under section 105,
if the State has such a Council, or by the commission described in section 101(a)(21)(A)(i),
if the State has such a commission;

(H) reports; and

(I) budget and financial
management data.

(3)Procedures
for monitoring

In conducting monitoring
under this section the Commissioner shall conduct-

(A) onsite visits,
including onsite reviews of records to verify that the State is following requirements
regarding the order of selection set forth in section 101(a)(5)(A);

(B) public hearings
and other strategies for collecting information from the public;

(C) meetings with
the State Rehabilitation Council, if the State has such a Council or with the
commission described in section 101(a)(21)(A)(i), if the State has such a commission;

(D) reviews of individual
case files, including individualized plans for employment and ineligibility
determinations; and

(E) meetings with
qualified vocational rehabilitation counselors and other personnel.

(4)Areas of
inquiry

In conducting the review
and monitoring, the Commissioner shall examine-

(A) the eligibility
process;

(B) the provision
of services, including, if applicable, the order of selection;

(C) such other areas
as may be identified by the public or through meetings with the State Rehabilitation
Council, if the State has such a Council or with the commission described in
section 101(a)(21)(A)(i), if the State has such a commission; and

(D) such other areas
of inquiry as the Commissioner may consider appropriate.

(5)Reports

If the Commissioner issues
a report detailing the findings of an annual review or onsite monitoring conducted
under this section, the report shall be made available to the State Rehabilitation
Council, if the State has such a Council, for use in the development and modification
of the State plan described in section 101.

(b)Technical
Assistance

The Commissioner shall-

(1) provide technical
assistance to programs under this title regarding improving the quality of vocational
rehabilitation services provided; and

(2) provide technical
assistance and establish a corrective action plan for a program under this title
if the Commissioner finds that the program fails to comply substantially with
the provisions of the State plan, or with evaluation standards or performance
indicators established under section 106, in order to ensure that such failure
is corrected as soon as practicable.

(c)Failure
To Comply With Plan

(1)Withholding
payments

Whenever the Commissioner,
after providing reasonable notice and an opportunity for a hearing to the State
agency administering or supervising the administration of the State plan approved
under section 101, finds that-

(A) the plan has
been so changed that it no longer complies with the requirements of section
101(a); or

(B) in the administration
of the plan there is a failure to comply substantially with any provision of
such plan or with an evaluation standard or performance indicator established
under section 106,

the Commissioner shall
notify such State agency that no further payments will be made to the State
under this title (or, in the discretion of the Commissioner, that such further
payments will be reduced, in accordance with regulations the Commissioner shall
prescribe, or that further payments will not be made to the State only for the
projects under the parts of the State plan affected by such failure), until
the Commissioner is satisfied there is no longer any such failure.

(2)Period

Until the Commissioner
is so satisfied, the Commissioner shall make no further payments to such State
under this title (or shall reduce payments or limit payments to projects under
those parts of the State plan in which there is no such failure).

(3)Disbursal
of withheld funds

The Commissioner may, in
accordance with regulations the Secretary shall prescribe, disburse any funds
withheld from a State under paragraph (1) to any public or nonprofit private
organization or agency within such State or to any political subdivision of
such State submitting a plan meeting the requirements of section 101(a). The
Commissioner may not make any payment under this paragraph unless the entity
to which such payment is made has provided assurances to the Commissioner that
such entity will contribute, for purposes of carrying out such plan, the same
amount as the State would have been obligated to contribute if the State received
such payment.

(d)Review

(1)Petition

Any State that is dissatisfied
with a final determination of the Commissioner under section 101(b) or subsection
(c) may file a petition for judicial review of such determination in the United
States Court of Appeals for the circuit in which the State is located. Such
a petition may be filed only within the 30-day period beginning on the date
that notice of such final determination was received by the State. The clerk
of the court shall transmit a copy of the petition to the Commissioner or to
any officer designated by the Commissioner for that purpose. In accordance with
section 2112 of title 28, United States Code, the Commissioner shall file with
the court a record of the proceeding on which the Commissioner based the determination
being appealed by the State. Until a record is so filed, the Commissioner may
modify or set aside any determination made under such proceedings.

(2)Submissions
and determinations

If, in an action under
this subsection to review a final determination of the Commissioner under section
101(b) or subsection (c), the petitioner or the Commissioner applies to the
court for leave to have additional oral submissions or written presentations
made respecting such determination, the court may, for good cause shown, order
the Commissioner to provide within 30 days an additional opportunity to make
such submissions and presentations. Within such period, the Commissioner may
revise any findings of fact, modify or set aside the determination being reviewed,
or make a new determination by reason of the additional submissions and presentations,
and shall file such modified or new determination, and any revised findings
of fact, with the return of such submissions and presentations. The court shall
thereafter review such new or modified determination.

(3)Standards
of review

(A)In general

Upon the filing of a petition
under paragraph (1) for judicial review of a determination, the court shall
have jurisdiction-

(i) to grant appropriate
relief as provided in chapter 7 of title 5, United States Code, except for interim
relief with respect to a determination under subsection (c); and

(ii) except as otherwise provided in subparagraph (B), to review such
determination in accordance with chapter 7 of title 5, United States Code.

(B)Substantial
evidence

Section 706 of title 5,
United States Code, shall apply to the review of any determination under this
subsection, except that the standard for review prescribed by paragraph (2)(E)
of such section 706 shall not apply and the court shall hold unlawful and set
aside such determination if the court finds that the determination is not supported
by substantial evidence in the record of the proceeding submitted pursuant to
paragraph (1), as supplemented by any additional submissions and presentations
filed under paragraph (2).

Sec. 108. Expenditure of
Certain Amounts

(a)Expenditure

Amounts described in subsection
(b) may not be expended by a State for any purpose other than carrying out programs
for which the State receives financial assistance under this title, under part
B of title VI, or under title VII.

(b)Amounts

The amounts referred to
in subsection (a) are amounts provided to a State under the Social Security
Act (42 U.S.C. 301 et seq.) as reimbursement for the expenditure of payments
received by the State from allotments under section 110 of this Act.

Sec. 109. Training of Employers
with Respect to Americans with Disabilities Act of 1990

A State may expend payments
received under section 111-

(1) to carry out
a program to train employers with respect to compliance with the requirements
of title I of the Americans with Disabilities Act of 1990 (42 U.S.C. 12111 et
seq.); and

(2) to inform employers
of the existence of the program and the availability of the services of the
program.

Part B-Basic Vocational
Rehabilitation Services

State Allotments

Sec. 110. (a)(1)
Subject to the provisions of subsection (c), for each fiscal year beginning
before October 1, 1978, each State shall be entitled to an allotment of an amount
bearing the same ratio to the amount authorized to be appropriated under section
100(b)(1) for allotment under this section as the product of-

(A) the population
of the State; and

(B) the square of
its allotment percentage, bears to the sum of the corresponding products for
all the States.

(2)(A) For each
fiscal year beginning on or after October 1, 1978, each State shall be entitled
to an allotment in an amount equal to the amount such State received under paragraph
(1) for the fiscal year ending September 30, 1978, and an additional amount
determined pursuant to subparagraph (B) of this paragraph.

(B) For each fiscal
year beginning on or after October 1, 1978, each State shall be entitled to
an allotment, from any amount authorized to be appropriated for such fiscal
year under section 100(b)(1) for allotment under this section in excess of the
amount appropriated under section 100(b)(1)(A) for the fiscal year ending September
30, 1978, in an amount equal to the sum of-

(i) an amount bearing
the same ratio to 50 percent of such excess amount as the product of the population
of the State and the square of its allotment percentage bears to the sum of
the corresponding products for all the States; and

(ii) an amount bearing
the same ratio to 50 percent of such excess amount as the product of the population
of the State and its allotment percentage bears to the sum of the corresponding
products for all the States.

(3) The sum of the
payment to any State (other than Guam, American Samoa, the Virgin Islands, and
the Commonwealth of the Northern Mariana Islands) under this subsection for
any fiscal year which is less than one-third of 1 percent of the amount appropriated
under section 100(b)(1), or $3,000,000, whichever is greater, shall be increased
to that amount, the total of the increases thereby required being derived by
proportionately reducing the allotment to each of the remaining such States
under this subsection, but with such adjustments as may be necessary to prevent
the sum of the allotments made under this subsection to any such remaining State
from being thereby reduced to less than that amount.

(b)(1) Not later
than forty-five days prior to the end of the fiscal year, the Commissioner shall
determine, after reasonable opportunity for the submission to the Commissioner
of comments by the State agency administering or supervising the program established
under this title, that any payment of an allotment to a State under section
111(a) for any fiscal year will not be utilized by such State in carrying out
the purposes of this title.

(2) As soon as practicable
but not later than the end of the fiscal year, the Commissioner shall make such
amount available for carrying out the purposes of this title to one or more
other States to the extent the Commissioner determines such other State will
be able to use such additional amount during that fiscal year or the subsequent
fiscal year for carrying out such purposes. The Commissioner shall make such
amount available only if such other State will be able to make sufficient payments
from non-Federal sources to pay for the non-Federal share of the cost of vocational
rehabilitation services under the State plan for the fiscal year for which the
amount was appropriated.

(3) For the purposes
of this part, any amount made available to a State for any fiscal year pursuant
to this subsection shall be regarded as an increase of such State's allotment
(as determined under the preceding provisions of this section) for such year.

(c)(1) For fiscal
year 1987 and for each subsequent fiscal year, the Commissioner shall reserve
from the amount appropriated under section 100(b)(1) for allotment under this
section a sum, determined under paragraph (2), to carry out the purposes of
part C.

(2) The sum referred
to in paragraph (1) shall be, as determined by the Secretary-

(A) not less than
three-quarters of 1 percent and not more than 1.5 percent of the amount referred
to in paragraph (1), for fiscal year 1999; and

(B) not less than
1 percent and not more than 1.5 percent of the amount referred to in paragraph
(1), for each of fiscal years 2000 through 2003.

Payments to States

Sec. 111. (a)(1)
Except as provided in paragraph (2), from each State's allotment under this
part for any fiscal year, the Commissioner shall pay to a State an amount equal
to the Federal share of the cost of vocational rehabilitation services under
the plan for that State approved under section 101, including expenditures for
the administration of the State plan.

(2)(A) The total
of payments under paragraph (1) to a State for a fiscal year may not exceed
its allotment under subsection (a) of section 110 for such year.

(B) For fiscal year 1994 and each fiscal year thereafter, the amount
otherwise payable to a State for a fiscal year under this section shall be reduced
by the amount by which expenditures from non-Federal sources under the State
plan under this title for the previous fiscal year are less than the total of
such expenditures for the second fiscal year preceding the previous fiscal year.

(C) The Commissioner
may waive or modify any requirement or limitation under subparagraph (B) or
section 101(a)(17) if the Commissioner determines that a waiver or modification
is an equitable response to exceptional or uncontrollable circumstances affecting
the State.

(3)(A) Except as
provided in subparagraph (B), the amount of a payment under this section with
respect to any construction project in any State shall be equal to the same
percentage of the cost of such project as the Federal share that is applicable
in the case of rehabilitation facilities (as defined in section 645(g) of the
Public Health Service Act (42 U.S.C. 291o(a))), in such State.

(B) If the Federal
share with respect to rehabilitation facilities in such State is determined
pursuant to section 645(b)(2) of such Act (42 U.S.C. 291o(b)(2)), the percentage
of the cost for purposes of this section shall be determined in accordance with
regulations prescribed by the Commissioner designed to achieve as nearly as
practicable results comparable to the results obtained under such section.

(b) The method
of computing and paying amounts pursuant to subsection (a) shall be as follows:

(1) The Commissioner
shall, prior to the beginning of each calendar quarter or other period prescribed
by the Commissioner, estimate the amount to be paid to each State under the
provisions of such subsection for such period, such estimate to be based on
such records of the State and information furnished by it, and such other investigation
as the Commissioner may find necessary.

(2) The Commissioner
shall pay, from the allotment available therefor, the amount so estimated by
the Commissioner for such period, reduced or increased, as the case may be,
by any sum (not previously adjusted under this paragraph) by which the Commissioner
finds that the estimate of the amount to be paid the State for any prior period
under such subsection was greater or less than the amount which should have
been paid to the State for such prior period under such subsection. Such payment
shall be made prior to audit or settlement by the General Accounting Office,
shall be made through the disbursing facilities of the Treasury Department,
and shall be made in such installments as the Commissioner may determine.

Client Assistance Program

Sec. 112.(a) From
funds appropriated under subsection (h), the Secretary shall, in accordance
with this section, make grants to States to establish and carry out client assistance
programs to provide assistance in informing and advising all clients and client
applicants of all available benefits under this Act, and, upon request of such
clients or client applicants, to assist and advocate for such clients or applicants
in their relationships with projects, programs, and services provided under
this Act, including assistance and advocacy in pursuing legal, administrative,
or other appropriate remedies to ensure the protection of the rights of such
individuals under this Act and to facilitate access to the services funded under
this Act through individual and systemic advocacy. The client assistance program
shall provide information on the available services and benefits under this
Act and title I of the Americans with Disabilities Act of 1990 (42 U.S.C. 12111
et seq.) to individuals with disabilities in the State, especially with regard
to individuals with disabilities who have traditionally been unserved or underserved
by vocational rehabilitation programs. In providing assistance and advocacy
under this subsection with respect to services under this title, a client assistance
program may provide the assistance and advocacy with respect to services that
are directly related to facilitating the employment of the individual.

(b) No State may
receive payments from its allotment under this Act in any fiscal year unless
the State has in effect not later than October 1, 1984, a client assistance
program which-

(1) has the authority
to pursue legal, administrative, and other appropriate remedies to ensure the
protection of rights of individuals with disabilities who are receiving treatments,
services, or rehabilitation under this Act within the State; and

(2) meets the requirements
of designation under subsection (c).

(c)(1)(A) The Governor
shall designate a public or private agency to conduct the client assistance
program under this section. Except as provided in the last sentence of this
subparagraph, the Governor shall designate an agency which is independent of
any agency which provides treatment, services, or rehabilitation to individuals
under this Act. If there is an agency in the State which has, or had, prior
to the date of enactment of the Rehabilitation Amendments of 1984, served as
a client assistance agency under this section and which received Federal financial
assistance under this Act, the Governor may, in the initial designation, designate
an agency which provides treatment, services, or rehabilitation to individuals
with disabilities under this Act.

(B)(i) The Governor
may not redesignate the agency designated under subparagraph (A) without good
cause and unless-

(I) the Governor
has given the agency 30 days notice of the intention to make such redesignation,
including specification of the good cause for such redesignation and an opportunity
to respond to the assertion that good cause has been shown;

(II) individuals
with disabilities or the individuals' representatives have timely notice of
the redesignation and opportunity for public comment; and

(III) the agency
has the opportunity to appeal to the Commissioner on the basis that the redesignation
was not for good cause.

(ii) If, after the
date of enactment of the Rehabilitation Act Amendments of 1998-

(I) a designated
State agency undergoes any change in the organizational structure of the agency
that results in the creation of 1 or more new State agencies or departments
or results in the merger of the designated State agency with 1 or more other
State agencies or departments; and

(II) an agency (including
an office or other unit) within the designated State agency was conducting a
client assistance program before the change under the last sentence of subparagraph
(A),the Governor shall redesignate the agency conducting the program. In conducting
the redesignation, the Governor shall designate to conduct the program an agency
that is independent of any agency that provides treatment, services, or rehabilitation
to individuals with disabilities under this Act.

(2) In carrying
out the provisions of this section, the Governor shall consult with the director
of the State vocational rehabilitation agency, the head of the developmental
disability protection and advocacy agency, and with representatives of professional
and consumer organizations serving individuals with disabilities in the State.

(3) The agency designated
under this subsection shall be accountable for the proper use of funds made
available to the agency.

(d) The agency
designated under subsection (c) of this section may not bring any class action
in carrying out its responsibilities under this section.

(e)(1)(A) The Secretary
shall allot the sums appropriated for each fiscal year under this section among
the States on the basis of relative population of each State, except that no
State shall receive less than $50,000.

(B) The Secretary
shall allot $30,000 each to American Samoa, Guam, the Virgin Islands, and the
Commonwealth of the Northern Mariana Islands.

(C) For the purpose
of this paragraph, the term "State" does not include American Samoa,
Guam, the Virgin Islands, and the Commonwealth of the Northern Mariana Islands.

(D)(i) In any fiscal
year that the funds appropriated for such fiscal year exceed $7,500,000, the
minimum allotment shall be $100,000 for States and $45,000 for territories.

(ii) For any fiscal
year in which the total amount appropriated under subsection (h) exceeds the
total amount appropriated under such subsection for the preceding fiscal year,
the Secretary shall increase each of the minimum allotments under clause (i)
by a percentage that shall not exceed the percentage increase in the total amount
appropriated under such subsection between the preceding fiscal year and the
fiscal year involved.

(2) The amount of
an allotment to a State for a fiscal year which the Secretary determines will
not be required by the State during the period for which it is available for
the purpose for which allotted shall be available for reallotment by the Secretary
at appropriate times to other States with respect to which such a determination
has not been made, in proportion to the original allotments of such States for
such fiscal year, but with such proportionate amount for any of such other States
being reduced to the extent it exceeds the sum the Secretary estimates such
State needs and will be able to use during such period, and the total of such
reduction shall be similarly reallotted among the States whose proportionate
amounts were not so reduced. Any such amount so reallotted to a State for a
fiscal year shall be deemed to be a part of its allotment for such fiscal year.

(3) Except as specifically
prohibited by or as otherwise provided in State law, the Secretary shall pay
to the agency designated under subsection (c) the amount specified in the application
approved under subsection (f).

(f) No grant may
be made under this section unless the State submits an application to the Secretary
at such time, in such manner, and containing or accompanied by such information
as the Secretary deems necessary to meet the requirements of this section.

(g) The Secretary
shall prescribe regulations applicable to the client assistance program which
shall include the following requirements:

(1) No employees
of such programs shall, while so employed, serve as staff or consultants of
any rehabilitation project, program, or facility receiving assistance under
this Act in the State.

(2) Each program
shall be afforded reasonable access to policymaking and administrative personnel
in the State and local rehabilitation programs, projects, or facilities.

(3)(A) Each program
shall contain provisions designed to assure that to the maximum extent possible
alternative means of dispute resolution are available for use at the discretion
of an applicant or client of the program prior to resorting to litigation or
formal adjudication to resolve a dispute arising under this section.

(B) In subparagraph
(A), the term "alternative means of dispute resolution" means any
procedure, including good faith negotiation, conciliation, facilitation, mediation,
fact finding, and arbitration, and any combination of procedures, that is used
in lieu of litigation in a court or formal adjudication in an administrative
forum, to resolve a dispute arising under this section.

(4) For purposes
of any periodic audit, report, or evaluation of the performance of a client
assistance program under this section, the Secretary shall not require such
a program to disclose the identity of, or any other personally identifiable
information related to, any individual requesting assistance under such program.

(h) There are authorized
to be appropriated such sums as may be necessary for fiscal years 1999 through
2003 to carry out the provisions of this section.

Part C-American Indian
Vocational Rehabilitation Services

Vocational Rehabilitation
Services Grants

Sec.121. (a)
The Commissioner, in accordance with the provisions of this part, may make grants
to the governing bodies of Indian tribes located on Federal and State reservations
(and consortia of such governing bodies) to pay 90 percent of the costs of vocational
rehabilitation services for American Indians who are individuals with disabilities
residing on or near such reservations. The non-Federal share of such costs may
be in cash or in kind, fairly valued, and the Commissioner may waive such non-Federal
share requirement in order to carry out the purposes of this Act.

(b)(1) No grant
may be made under this part for any fiscal year unless an application therefor
has been submitted to and approved by the Commissioner. The Commissioner may
not approve an application unless the application-

(A) is made at such
time, in such manner, and contains such information as the Commissioner may
require;

(B) contains assurances
that the rehabilitation services provided under this part to American Indians
who are individuals with disabilities residing on or near a reservation in a
State shall be, to the maximum extent feasible, comparable to rehabilitation
services provided under this title to other individuals with disabilities residing
in the State and that, where appropriate, may include services traditionally
used by Indian tribes; and

(C) contains assurances
that the application was developed in consultation with the designated State
unit of the State.

(2) The provisions
of sections 5, 6, 7, and 102(a) of the Indian Self-Determination and Education
Assistance Act shall be applicable to any application submitted under this part.
For purposes of this paragraph, any reference in any such provision to the Secretary
of Education or to the Secretary of the Interior shall be considered to be a
reference to the Commissioner.

(3) Any application
approved under this part shall be effective for not more than 60 months, except
as determined otherwise by the Commissioner pursuant to prescribed regulations.
The State shall continue to provide vocational rehabilitation services under
its State plan to American Indians residing on or near a reservation whenever
such State includes any such American Indians in its State population under
section 110(a)(1).

(4) In making grants
under this part, the Secretary shall give priority consideration to applications
for the continuation of programs which have been funded under this part.

(5) Nothing in this
section may be construed to authorize a separate service delivery system for
Indian residents of a State who reside in non-reservation areas.

(c) The term "reservation" includes Indian reservations,
public domain Indian allotments, former Indian reservations in Oklahoma, and
land held by incorporated Native groups, regional corporations, and village
corporations under the provisions of the Alaska Native Claims Settlement Act.

Part D-Vocational Rehabilitation Services Client Information

Sec. 131. Data Sharing

(a) In General

(1)Memorandum
of understanding

The Secretary of Education
and the Secretary of Health and Human Services shall enter into a memorandum
of understanding for the purposes of exchanging data of mutual importance-

(A) that concern
clients of designated State agencies; and

(B) that are data
maintained either by-

(i) the Rehabilitation
Services Administration, as required by section 13; or

(ii) the Social
Security Administration, from its Summary Earnings and Records and Master Beneficiary
Records.

(2)Employment
statistics

The Secretary of Labor
shall provide the Commissioner with employment statistics specified in section
15 of the Wagner-Peyser Act, that facilitate evaluation by the Commissioner
of the program carried out under part B, and allow the Commissioner to compare
the progress of individuals with disabilities who are assisted under the program
in securing, retaining, regaining, and advancing in employment with the progress
made by individuals who are assisted under title I of the Workforce Investment
Act of 1998.

(b)Treatment
of Information

For purposes of the exchange
described in subsection (a)(1), the data described in subsection (a)(1)(B)(ii)
shall not be considered return information (as defined in section 6103(b)(2)
of the Internal Revenue Code of 1986) and, as appropriate, the confidentiality
of all client information shall be maintained by the Rehabilitation Services
Administration and the Social Security Administration.

TITLE II-RESEARCH AND TRAINING

Declaration of Purpose

Sec. 200.

The purpose of this title
is to-

(1) provide for
research, demonstration projects, training, and related activities to maximize
the full inclusion and integration into society, employment, independent living,
family support, and economic and social self-sufficiency of individuals with
disabilities of all ages, with particular emphasis on improving the effectiveness
of services authorized under this Act;

(2) provide for
a comprehensive and coordinated approach to the support and conduct of such
research, demonstration projects, training, and related activities and to ensure
that the approach is in accordance with the 5-year plan developed under section
202(h);

(3) promote the
transfer of rehabilitation technology to individuals with disabilities through
research and demonstration projects relating to-

(A) the procurement
process for the purchase of rehabilitation technology;

(B) the utilization
of rehabilitation technology on a national basis;

(C) specific adaptations
or customizations of products to enable individuals with disabilities to live
more independently; and

(B) regarding state-of-the-art
practices, improvements in the services authorized under this Act, rehabilitation
technology, and new knowledge regarding disabilities,

to rehabilitation professionals,
individuals with disabilities, and other interested parties, including the general
public;

(5) identify effective
strategies that enhance the opportunities of individuals with disabilities to
engage in employment, including employment involving telecommuting and self-employment;
and

(6) increase opportunities
for researchers who are members of traditionally underserved populations, including
researchers who are members of minority groups and researchers who are individuals
with disabilities.

Authorization of Appropriations

Sec. 201. (a) There
are authorized to be appropriated-

(1) for the purpose
of providing for the expenses of the National Institute on Disability and Rehabilitation
Research under section 202, which shall include the expenses of the Rehabilitation
Research Advisory Council under section 205, and shall not include the expenses
of such Institute to carry out section 204, such sums as may be necessary for
each of fiscal years 1999 through 2003; and

(2) to carry out
section 204, such sums as may be necessary for each of fiscal years 1999 through
2003.`(b) Funds appropriated under this title shall remain available until expended.

National Institute on Disability
and Rehabilitation Research

Sec. 202. (a)(1)

There is established within
the Department of Education a National Institute on Disability and Rehabilitation
Research (hereinafter in this title referred to as the "Institute"),
which shall be headed by a Director (hereinafter in this title referred to as
the "Director"), in order to-

(A) promote, coordinate,
and provide for-

(i) research;

(ii) demonstration
projects and training; and

(iii) related activities,
with respect to individuals with disabilities;

(B) more effectively
carry out activities through the programs under section 204 and activities under
this section;

(C) widely disseminate
information from the activities described in subparagraphs (A) and (B); and

(D) provide leadership
in advancing the quality of life of individuals with disabilities.

(2) In the performance
of the functions of the office, the Director shall be directly responsible to
the Secretary or to the same Under Secretary or Assistant Secretary of the Department
of Education to whom the Commissioner is responsible under section 3(a).

(b) The Director,
through the Institute, shall be responsible for-

(1) administering
the programs described in section 204 and activities under this section;

(2) widely disseminating
findings, conclusions, and recommendations, resulting from research, demonstration
projects, training, and related activities (referred to in this title as "covered
activities") funded by the Institute, to-

(A) other Federal,
State, tribal, and local public agencies;

(B) private organizations
engaged in research relating to rehabilitation or providing rehabilitation services;

(C) rehabilitation
practitioners; and

(D) individuals
with disabilities and the individuals' representatives;

(3) coordinating,
through the Interagency Committee established by section 203 of this Act, all
Federal programs and policies relating to research in rehabilitation;

(4) widely disseminating
educational materials and research results, concerning ways to maximize the
full inclusion and integration into society, employment, independent living,
family support, and economic and social self-sufficiency of individuals with
disabilities, to-

(A) public and private
entities, including-

(i) elementary and
secondary schools (as defined in section 14101 of the Elementary and Secondary
Education Act of 1965; and

(ii) institutions
of higher education;

(B) rehabilitation
practitioners;

(C) individuals
with disabilities (especially such individuals who are members of minority groups
or of populations that are unserved or underserved by programs under this Act);
and

(D) the individuals'
representatives for the individuals described in subparagraph (C);

(5)(A) conducting
an education program to inform the public about ways of providing for the rehabilitation
of individuals with disabilities, including information relating to-

(B) as part of the
program, disseminating engineering information about assistive technology devices;

(6) conducting conferences,
seminars, and workshops (including in-service training programs and programs
for individuals with disabilities) concerning advances in rehabilitation research
and rehabilitation technology (including advances concerning the selection and
use of assistive technology devices and assistive technology services), pertinent
to the full inclusion and integration into society, employment, independent
living, family support, and economic and social self-sufficiency of individuals
with disabilities;

(7) taking whatever
action is necessary to keep the Congress fully and currently informed with respect
to the implementation and conduct of programs and activities carried out under
this title, including dissemination activities;

(8) producing, in
conjunction with the Department of Labor, the National Center for Health Statistics,
the Bureau of the Census, the Health Care Financing Administration, the Social
Security Administration, the Bureau of Indian Affairs, the Indian Health Service,
and other Federal departments and agencies, as may be appropriate, statistical
reports and studies on the employment, self-employment, telecommuting, health,
income, and other demographic characteristics of individuals with disabilities,
including information on individuals with disabilities who live in rural or
inner-city settings, with particular attention given to underserved populations,
and widely disseminating such reports and studies to rehabilitation professionals,
individuals with disabilities, the individuals' representatives, and others
to assist in the planning, assessment, and evaluation of vocational and other
rehabilitation services for individuals with disabilities;

(9) conducting research
on consumer satisfaction with vocational rehabilitation services for the purpose
of identifying effective rehabilitation programs and policies that promote the
independence of individuals with disabilities and achievement of long-term vocational
goals;

(10) conducting
research to examine the relationship between the provision of specific services
and successful, sustained employment outcomes, including employment outcomes
involving self-employment and telecommuting; and

(11) coordinating
activities with the Attorney General regarding the provision of information,
training, or technical assistance regarding the Americans with Disabilities
Act of 1990 (42 U.S.C. 12101 et seq.) to ensure consistency with the plan for
technical assistance required under section 506 of such Act (42 U.S.C. 12206).

(c)(1) The Director,
acting through the Institute or 1 or more entities funded by the Institute,
shall provide for the development and dissemination of models to address consumer-driven
information needs related to assistive technology devices and assistive technology
services.

(2) The development
and dissemination of models may include-

(A) convening groups
of individuals with disabilities, family members and advocates of such individuals,
commercial producers of assistive technology, and entities funded by the Institute
to develop, assess, and disseminate knowledge about information needs related
to assistive technology;

(C) evaluating current
models, and developing new models, for transmitting the information described
in subparagraph (B) to consumers and to commercial producers of assistive technology;
and

(D) disseminating
through 1 or more entities funded by the Institute, the models described in
subparagraph (C) and findings regarding the information described in subparagraph
(B) to consumers and commercial producers of assistive technology.

(d)(1) The Director
of the Institute shall be appointed by the Secretary. The Director shall be
an individual with substantial experience in rehabilitation and in research
administration.

(2) The Director,
subject to the approval of the President, may appoint, for terms not to exceed
three years, without regard to the provisions of title 5, United States Code,
governing appointment in the competitive service, and may compensate, without
regard to the provisions of chapter 51 and subchapter III of chapter 53 of such
title relating to classification and General Schedule pay rates, such technical
and professional employees of the Institute as the Director determines to be
necessary to accomplish the functions of the Institute and also appoint and
compensate without regard to such provisions, in a number not to exceed one-fifth
of the number of full-time, regular technical and professional employees of
the Institute.

(3) The Director
may obtain the services of consultants, without regard to the provisions of
title 5, United States Code, governing appointments in the competitive service.

(e) The Director,
pursuant to regulations which the Secretary shall prescribe, may establish and
maintain fellowships with such stipends and allowances, including travel and
subsistence expenses provided for under title 5, United States Code, as the
Director considers necessary to procure the assistance of highly qualified research
fellows, including individuals with disabilities, from the United States and
foreign countries.

(f)(1) The Director
shall provide for scientific peer review of all applications for financial assistance
for research, training, and demonstration projects over which the Director has
authority. The scientific peer review shall be conducted by individuals who
are not Federal employees, who are scientists or other experts in the rehabilitation
field (including the independent living field), including knowledgeable individuals
with disabilities, and the individuals' representatives, and who are competent
to review applications for the financial assistance.

(2) In providing
for such scientific peer review, the Secretary shall provide for training, as
necessary and appropriate, to facilitate the effective participation of those
individuals selected to participate in such review.

(g) Not less than
90 percent of the funds appropriated under this title for any fiscal year shall
be expended by the Director to carry out activities under this title through
grants, contracts, or cooperative agreements. Up to 10 percent of the funds
appropriated under this title for any fiscal year may be expended directly for
the purpose of carrying out the functions of the Director under this section.

(h)(1) The Director
shall-

(A) by October 1,
1998 and every fifth October 1 thereafter, prepare and publish in the Federal
Register for public comment a draft of a 5-year plan that outlines priorities
for rehabilitation research, demonstration projects, training, and related activities
and explains the basis for such priorities;

(B) by June 1, 1999,
and every fifth June 1 thereafter, after considering public comments, submit
the plan in final form to the appropriate committees of Congress;

(C) at appropriate
intervals, prepare and submit revisions in the plan to the appropriate committees
of Congress; and

(D) annually prepare
and submit progress reports on the plan to the appropriate committees of Congress.

(2) Such plan shall-

(A) identify any
covered activity that should be conducted under this section and section 204
respecting the full inclusion and integration into society of individuals with
disabilities, especially in the area of employment;

(B) determine the
funding priorities for covered activities to be conducted under this section
and section 204;

(C) specify appropriate
goals and timetables for covered activities to be conducted under this section
and section 204;

(D) be developed
by the Director-

(i) after consultation
with the Rehabilitation Research Advisory Council established under section
205;

(ii) in coordination
with the Commissioner;

(iii) after consultation
with the National Council on Disability established under title IV, the Secretary
of Education, officials responsible for the administration of the Developmental
Disabilities Assistance and Bill of Rights Act (42 U.S.C. 6000 et seq.), and
the Interagency Committee on Disability Research established under section 203;
and

(iv) after full
consideration of the input of individuals with disabilities and the individuals'
representatives, organizations representing individuals with disabilities, providers
of services furnished under this Act, researchers in the rehabilitation field,
and any other persons or entities the Director considers to be appropriate;

(E) specify plans
for widespread dissemination of the results of covered activities, in accessible
formats, to rehabilitation practitioners, individuals with disabilities, and
the individuals' representatives; and

(F) specify plans
for widespread dissemination of the results of covered activities that concern
individuals with disabilities who are members of minority groups or of populations
that are unserved or underserved by programs carried out under this Act.

(i) In order to
promote cooperation among Federal departments and agencies conducting research
programs, the Director shall consult with the administrators of such programs,
and with the Interagency Committee established by section 203, regarding the
design of research projects conducted by such entities and the results and applications
of such research.

(j)(1) The Director
shall take appropriate actions to provide for a comprehensive and coordinated
research program under this title. In providing such a program, the Director
may undertake joint activities with other Federal entities engaged in research
and with appropriate private entities. Any Federal entity proposing to establish
any research project related to the purposes of this Act shall consult, through
the Interagency Committee established by section 203, with the Director as Chairperson
of such Committee and provide the Director with sufficient prior opportunity
to comment on such project.

(2) Any person responsible
for administering any program of the National Institutes of Health, the Department
of Veterans Affairs, the National Science Foundation, the National Aeronautics
and Space Administration, the Office of Special Education and Rehabilitative
Services, or of any other Federal entity, shall, through the Interagency Committee
established by section 203, consult and cooperate with the Director in carrying
out such program if the program is related to the purposes of this title.

(3) The Director
shall support, directly or by grant or contract, a center associated with an
institution of higher education, for research and training concerning the delivery
of vocational rehabilitation services to rural areas.

(k) The Director
shall make grants to institutions of higher education for the training of rehabilitation
researchers, including individuals with disabilities, with particular attention
to research areas that support the implementation and objectives of this Act
and that improve the effectiveness of services authorized under this Act.

Interagency Committee

Sec. 203. (a)(1)
In order to promote coordination and cooperation among Federal departments and
agencies conducting rehabilitation research programs, there is established within
the Federal Government an Interagency Committee on Disability Research (hereinafter
in this section referred to as the "Committee"), chaired by the Director
and comprised of such members as the President may designate, including the
following (or their designees): the Director, the Commissioner of the Rehabilitation
Services Administration, the Assistant Secretary for Special Education and Rehabilitative
Services, the Secretary of Education, the Secretary of Veterans Affairs, the
Director of the National Institutes of Health, the Director of the National
Institute of Mental Health, the Administrator of the National Aeronautics and
Space Administration, the Secretary of Transportation, the Assistant Secretary
of the Interior for Indian Affairs, the Director of the Indian Health Service,
and the Director of the National Science Foundation.

(2) The Committee
shall meet not less than four times each year.

(b) After receiving
input from individuals with disabilities and the individuals' representatives,
the Committee shall identify, assess, and seek to coordinate all Federal programs,
activities, and projects, and plans for such programs, activities, and projects
with respect to the conduct of research related to rehabilitation of individuals
with disabilities.

(c) The Committee
shall annually submit to the President and to the appropriate committees of
the Congress a report making such recommendations as the Committee deems appropriate
with respect to coordination of policy and development of objectives and priorities
for all Federal programs relating to the conduct of research related to rehabilitation
of individuals with disabilities.

Research and Other Covered
Activities

Sec. 204. (a)(1)
To the extent consistent with priorities established in the 5-year plan described
in section 202(h), the Director may make grants to and contracts with States
and public or private agencies and organizations, including institutions of
higher education, Indian tribes, and tribal organizations, to pay part of the
cost of projects for the purpose of planning and conducting research, demonstration
projects, training, and related activities, the purposes of which are to develop
methods, procedures, and rehabilitation technology, that maximize the full inclusion
and integration into society, employment, independent living, family support,
and economic and social self-sufficiency of individuals with disabilities, especially
individuals with the most significant disabilities, and improve the effectiveness
of services authorized under this Act.

(2)(A) In carrying
out this section, the Director shall emphasize projects that support the implementation
of titles I, III, V, VI, and VII, including projects addressing the needs described
in the State plans submitted under section 101 or 704 by State agencies.

(B) Such projects,
as described in the State plans submitted by State agencies, may include-

(i) medical and
other scientific, technical, methodological, and other investigations into the
nature of disability, methods of analyzing it, and restorative techniques, including
basic research where related to rehabilitation techniques or services;

(iii) studies and
analysis of special problems of individuals who are homebound and individuals
who are institutionalized;

(iv) studies, analyses,
and demonstrations of architectural and engineering design adapted to meet the
special needs of individuals with disabilities;

(v) studies, analyses,
and other activities related to supported employment;

(vi) related activities which hold promise of increasing knowledge and
improving methods in the rehabilitation of individuals with disabilities and
individuals with the most significant disabilities, particularly individuals
with disabilities, and individuals with the most significant disabilities, who
are members of populations that are unserved or underserved by programs under
this Act; and

(vii) studies, analyses,
and other activities related to job accommodations, including the use of rehabilitation
engineering and assistive technology.

(b)(1) In addition
to carrying out projects under subsection (a), the Director may make grants
under this subsection (referred to in this subsection as "research grants")
to pay part or all of the cost of the research or other specialized covered
activities described in paragraphs (2) through (18). A research grant made under
any of paragraphs (2) through (18) may only be used in a manner consistent with
priorities established in the 5-year plan described in section 202(h).

(2)(A) Research
grants may be used for the establishment and support of Rehabilitation Research
and Training Centers, for the purpose of providing an integrated program of
research, which Centers shall-

(i) be operated
in collaboration with institutions of higher education or providers of rehabilitation
services or other appropriate services; and

(ii) serve as centers
of national excellence and national or regional resources for providers and
individuals with disabilities and the individuals' representatives.

(B) The Centers
shall conduct research and training activities by-

(i) conducting coordinated
and advanced programs of research in rehabilitation targeted toward the production
of new knowledge that will improve rehabilitation methodology and service delivery
systems, alleviate or stabilize disabling conditions, and promote maximum social
and economic independence of individuals with disabilities, especially promoting
the ability of the individuals to prepare for, secure, retain, regain, or advance
in employment;

(iii) providing
training (including graduate, pre-service, and in-service training) for rehabilitation
research personnel and other rehabilitation personnel; and

(iv) serving as
an informational and technical assistance resource to providers, individuals
with disabilities, and the individuals' representatives, through conferences,
workshops, public education programs, in-service training programs, and similar
activities.

(C) The research
to be carried out at each such Center may include-

(i) basic or applied medical rehabilitation research;

(ii) research regarding
the psychological and social aspects of rehabilitation, including disability
policy;

(iii) research related
to vocational rehabilitation;

(iv) continuation
of research that promotes the emotional, social, educational, and functional
growth of children who are individuals with disabilities;

(v) continuation
of research to develop and evaluate interventions, policies, and services that
support families of those children and adults who are individuals with disabilities;
and

(vi) continuation
of research that will improve services and policies that foster the productivity,
independence, and social integration of individuals with disabilities, and enable
individuals with disabilities, including individuals with mental retardation
and other developmental disabilities, to live in their communities.

(D) Training of
students preparing to be rehabilitation personnel shall be an important priority
for such a Center.

(E) The Director
shall make grants under this paragraph to establish and support both comprehensive
centers dealing with multiple disabilities and centers primarily focused on
particular disabilities.

(F) Grants made
under this paragraph may be used to provide funds for services rendered by such
a Center to individuals with disabilities in connection with the research and
training activities.

(G) Grants made
under this paragraph may be used to provide faculty support for teaching-

(i) rehabilitation-related
courses of study for credit; and

(ii) other courses
offered by the Centers, either directly or through another entity.

(H) The research
and training activities conducted by such a Center shall be conducted in a manner
that is accessible to and usable by individuals with disabilities.

(I) The Director
shall encourage the Centers to develop practical applications for the findings
of the research of the Centers.

(J) In awarding
grants under this paragraph, the Director shall take into consideration the
location of any proposed Center and the appropriate geographic and regional
allocation of such Centers.

(K) To be eligible
to receive a grant under this paragraph, each such institution or provider described
in subparagraph (A) shall-

(i) be of sufficient
size, scope, and quality to effectively carry out the activities in an efficient
manner consistent with appropriate State and Federal law; and

(ii) demonstrate
the ability to carry out the training activities either directly or through
another entity that can provide such training.

(L) The Director
shall make grants under this paragraph for periods of 5 years, except that the
Director may make a grant for a period of less than 5 years if-

(i) the grant is
made to a new recipient; or

(ii) the grant supports
new or innovative research.

(M) Grants made
under this paragraph shall be made on a competitive basis. To be eligible to
receive a grant under this paragraph, a prospective grant recipient shall submit
an application to the Director at such time, in such manner, and containing
such information as the Director may require.

(N) In conducting
scientific peer review under section 202(f) of an application for the renewal
of a grant made under this paragraph, the peer review panel shall take into
account the past performance of the applicant in carrying out the grant and
input from individuals with disabilities and the individuals' representatives.

(O) An institution
or provider that receives a grant under this paragraph to establish such a Center
may not collect more than 15 percent of the amount of the grant received by
the Center in indirect cost charges.

(3)(A) Research
grants may be used for the establishment and support of Rehabilitation Engineering
Research Centers, operated by or in collaboration with institutions of higher
education or nonprofit organizations, to conduct research or demonstration activities,
and training activities, regarding rehabilitation technology, including rehabilitation
engineering, assistive technology devices, and assistive technology services,
for the purposes of enhancing opportunities for better meeting the needs of,
and addressing the barriers confronted by, individuals with disabilities in
all aspects of their lives.

(B) In order to
carry out the purposes set forth in subparagraph (A), such a Center shall carry
out the research or demonstration activities by-

(I) solve rehabilitation
problems and remove environmental barriers through planning and conducting research,
including cooperative research with public or private agencies and organizations,
designed to produce new scientific knowledge, and new or improved methods, equipment,
and devices; and

(II) study new or
emerging technologies, products, or environments, and the effectiveness and
benefits of such technologies, products, or environments;

(ii) demonstrating
and disseminating-

(I) innovative models
for the delivery, to rural and urban areas, of cost-effective rehabilitation
technology services that promote utilization of assistive technology devices;
and

(II) other scientific
research to assist in meeting the employment and independent living needs of
individuals with significant disabilities; or

(iii) conducting
research or demonstration activities that facilitate service delivery systems
change by demonstrating, evaluating, documenting, and disseminating-

(I) consumer responsive
and individual and family-centered innovative models for the delivery to both
rural and urban areas, of innovative cost-effective rehabilitation technology
services that promote utilization of rehabilitation technology; and

(II) other scientific
research to assist in meeting the employment and independent living needs of,
and addressing the barriers confronted by, individuals with disabilities, including
individuals with significant disabilities.

(C) To the extent
consistent with the nature and type of research or demonstration activities
described in subparagraph (B), each Center established or supported through
a grant made available under this paragraph shall-

(i) cooperate with
programs established under the Technology-Related Assistance for Individuals
With Disabilities Act of 1988 (29 U.S.C. 2201 et seq.) and other regional and
local programs to provide information to individuals with disabilities and the
individuals' representatives to-

(I) increase awareness
and understanding of how rehabilitation technology can address their needs;
and

(II) increase awareness
and understanding of the range of options, programs, services, and resources
available, including financing options for the technology and services covered
by the area of focus of the Center;

(ii) provide training
opportunities to individuals, including individuals with disabilities, to become
researchers of rehabilitation technology and practitioners of rehabilitation
technology in conjunction with institutions of higher education and nonprofit
organizations; and

(iii) respond, through
research or demonstration activities, to the needs of individuals with all types
of disabilities who may benefit from the application of technology within the
area of focus of the Center.

(D)(i) In establishing
Centers to conduct the research or demonstration activities described in subparagraph
(B)(iii), the Director may establish one Center in each of the following areas
of focus:

(I) Early childhood
services, including early intervention and family support.

(II) Education at
the elementary and secondary levels, including transition from school to postschool
activities.

(III) Employment,
including supported employment, and reasonable accommodations and the reduction
of environmental barriers as required by the Americans with Disabilities Act
of 1990 (42 U.S.C. 12101 et seq.) and title V.

(IV) Independent
living, including transition from institutional to community living, maintenance
of community living on leaving the work force, self-help skills, and activities
of daily living.

(ii) Each Center
conducting the research or demonstration activities described in subparagraph
(B)(iii) shall have an advisory committee, of which the majority of members
are individuals with disabilities who are users of rehabilitation technology,
and the individuals' representatives.

(E) Grants made
under this paragraph shall be made on a competitive basis and shall be for a
period of 5 years, except that the Director may make a grant for a period of
less than 5 years if-

(i) the grant is
made to a new recipient; or

(ii) the grant supports
new or innovative research.`(F) To be eligible to receive a grant under this
paragraph, a prospective grant recipient shall submit an application to the
Director at such time, in such manner, and containing such information as the
Director may require.

(G) Each Center
established or supported through a grant made available under this paragraph
shall-

(i) cooperate with
State agencies and other local, State, regional, and national programs and organizations
developing or delivering rehabilitation technology, including State programs
funded under the Technology-Related Assistance for Individuals With Disabilities
Act of 1988 (29 U.S.C. 2201 et seq.); and

(ii) prepare and
submit to the Director as part of an application for continuation of a grant,
or as a final report, a report that documents the outcomes of the program of
the Center in terms of both short- and long-term impact on the lives of individuals
with disabilities, and such other information as may be requested by the Director.

(4)(A) Research
grants may be used to conduct a program for spinal cord injury research, including
conducting such a program by making grants to public or private agencies and
organizations to pay part or all of the costs of special projects and demonstration
projects for spinal cord injuries, that will-

(i) ensure widespread
dissemination of research findings among all Spinal Cord Injury Centers, to
rehabilitation practitioners, individuals with spinal cord injury, the individuals'
representatives, and organizations receiving financial assistance under this
paragraph;

(ii) provide encouragement
and support for initiatives and new approaches by individual and institutional
investigators; and

(iii) establish
and maintain close working relationships with other governmental and voluntary
institutions and organizations engaged in similar efforts in order to unify
and coordinate scientific efforts, encourage joint planning, and promote the
interchange of data and reports among spinal cord injury investigations.

(B) Any agency or
organization carrying out a project or demonstration project assisted by a grant
under this paragraph that provides services to individuals with spinal cord
injuries shall-

(i) establish, on
an appropriate regional basis, a multidisciplinary system of providing vocational
and other rehabilitation services, specifically designed to meet the special
needs of individuals with spinal cord injuries, including acute care as well
as periodic inpatient or outpatient followup and services;

(ii) demonstrate
and evaluate the benefits to individuals with spinal cord injuries served in,
and the degree of cost-effectiveness of, such a regional system;

(iii) demonstrate
and evaluate existing, new, and improved methods and rehabilitation technology
essential to the care, management, and rehabilitation of individuals with spinal
cord injuries; and

(iv) demonstrate
and evaluate methods of community outreach for individuals with spinal cord
injuries and community education in connection with the problems of such individuals
in areas such as housing, transportation, recreation, employment, and community
activities.

(C) In awarding
grants under this paragraph, the Director shall take into account the location
of any proposed Spinal Cord Injury Center and the appropriate geographic and
regional allocation of such Centers.

(5) Research grants
may be used to conduct a program for end-stage renal disease research, to include
support of projects and demonstrations for providing special services (including
transplantation and dialysis), artificial kidneys, and supplies necessary for
the rehabilitation of individuals with such disease and which will-

(A) ensure dissemination
of research findings;

(B) provide encouragement
and support for initiatives and new approaches by individuals and institutional
investigators; and

(C) establish and
maintain close working relationships with other governmental and voluntary institutions
and organizations engaged in similar efforts, in order to unify and coordinate
scientific efforts, encourage joint planning, and promote the interchange of
data and reports among investigators in the field of end-stage renal disease.
No person shall be selected to participate in such program who is eligible for
services for such disease under any other provision of law.

(6) Research grants
may be used to conduct a program for international rehabilitation research,
demonstration, and training for the purpose of developing new knowledge and
methods in the rehabilitation of individuals with disabilities in the United
States, cooperating with and assisting in developing and sharing information
found useful in other nations in the rehabilitation of individuals with disabilities,
and initiating a program to exchange experts and technical assistance in the
field of rehabilitation of individuals with disabilities with other nations
as a means of increasing the levels of skill of rehabilitation personnel.

(7) Research grants
may be used to conduct a research program concerning the use of existing telecommunications
systems (including telephone, television, satellite, radio, and other similar
systems) which have the potential for substantially improving service delivery
methods, and the development of appropriate programming to meet the particular
needs of individuals with disabilities.

(8) Research grants
may be used to conduct a program of joint projects with the National Institutes
of Health, the National Institute of Mental Health, the Health Services Administration,
the Administration on Aging, the National Science Foundation, the Veterans'
Administration, the Department of Health and Human Services, the National Aeronautics
and Space Administration, other Federal agencies, and private industry in areas
of joint interest involving rehabilitation.

(9) Research grants
may be used to conduct a program of research related to the rehabilitation of
children, or older individuals, who are individuals with disabilities, including
older American Indians who are individuals with disabilities. Such research
program may include projects designed to assist the adjustment of, or maintain
as residents in the community, older workers who are individuals with disabilities
on leaving the work force.

(10) Research grants
may be used to conduct a research program to develop and demonstrate innovative
methods to attract and retain professionals to serve in rural areas in the rehabilitation
of individuals with disabilities, including individuals with significant disabilities.

(11) Research grants
may be used to conduct a model research and demonstration project designed to
assess the feasibility of establishing a center for producing and distributing
to individuals who are deaf or hard of hearing captioned video cassettes providing
a broad range of educational, cultural, scientific, and vocational programming.

(12) Research grants
may be used to conduct a model research and demonstration program to develop
innovative methods of providing services for preschool age children who are
individuals with disabilities, including-

(A) early intervention,
assessment, parent counseling, infant stimulation, early identification, diagnosis,
and evaluation of children who are individuals with significant disabilities
up to the age of five, with a special emphasis on children who are individuals
with significant disabilities up to the age of three;

(B) such physical
therapy, language development, pediatric, nursing, psychological, and psychiatric
services as are necessary for such children; and

(C) appropriate
services for the parents of such children, including psychological and psychiatric
services, parent counseling, and training.

(13) Research grants
may be used to conduct a model research and training program under which model
training centers shall be established to develop and use more advanced and effective
methods of evaluating and addressing the employment needs of individuals with
disabilities, including programs that-

(A) provide training
and continuing education for personnel involved with the employment of individuals
with disabilities;

(B) develop model
procedures for testing and evaluating the employment needs of individuals with
disabilities;

(C) develop model
training programs to teach individuals with disabilities skills which will lead
to appropriate employment;

(D) develop new
approaches for job placement of individuals with disabilities, including new
followup procedures relating to such placement;

(F) develop new
approaches and provide information regarding job accommodations, including the
use of rehabilitation engineering and assistive technology.

(14) Research grants
may be used to conduct a rehabilitation research program under which financial
assistance is provided in order to-

(A) test new concepts
and innovative ideas;

(B) demonstrate
research results of high potential benefits;

(C) purchase prototype
aids and devices for evaluation;

(D) develop unique
rehabilitation training curricula; and

(E) be responsive
to special initiatives of the Director. No single grant under this paragraph
may exceed $50,000 in any fiscal year and all payments made under this paragraph
in any fiscal year may not exceed 5 percent of the amount available for this
section to the National Institute on Disability and Rehabilitation Research
in any fiscal year. Regulations and administrative procedures with respect to
financial assistance under this paragraph shall, to the maximum extent possible,
be expedited.

(15) Research grants
may be used to conduct studies of the rehabilitation needs of American Indian
populations and of effective mechanisms for the delivery of rehabilitation services
to Indians residing on and off reservations.

(16) Research grants
may be used to conduct a demonstration program under which one or more projects
national in scope shall be established to develop procedures to provide incentives
for the development, manufacturing, and marketing of orphan technological devices,
including technology transfer concerning such devices, designed to enable individuals
with disabilities to achieve independence and access to gainful employment.

(17)(A) Research
grants may be used to conduct a research program related to quality assurance
in the area of rehabilitation technology.

(B) Activities carried
out under the research program may include-

(i) the development
of methodologies to evaluate rehabilitation technology products and services
and the dissemination of the methodologies to consumers and other interested
parties;

(ii) identification of models for service provider training and evaluation
and certification of the effectiveness of the models;

(iii) identification
and dissemination of outcome measurement models for the assessment of rehabilitation
technology products and services; and

(iv) development
and testing of research-based tools to enhance consumer decisionmaking about
rehabilitation technology products and services.

(18) Research grants
may be used to provide for research and demonstration projects and related activities
that explore the use and effectiveness of specific alternative or complementary
medical practices for individuals with disabilities. Such projects and activities
may include projects and activities designed to-

(A) determine the
use of specific alternative or complementary medical practices among individuals
with disabilities and the perceived effectiveness of the practices;

(B) determine the
specific information sources, decisionmaking methods, and methods of payment
used by individuals with disabilities who access alternative or complementary
medical services;

(C) develop criteria
to screen and assess the validity of research studies of such practices for
individuals with disabilities; and

(D) determine the
effectiveness of specific alternative or complementary medical practices that
show promise for promoting increased functioning, prevention of secondary disabilities,
or other positive outcomes for individuals with certain types of disabilities,
by conducting controlled research studies.

(c)(1) In carrying
out evaluations of covered activities under this section, the Director is authorized
to make arrangements for site visits to obtain information on the accomplishments
of the projects.

(2) The Director
shall not make a grant under this section that exceeds $500,000 unless the peer
review of the grant application has included a site visit.

Rehabilitation Research
Advisory Council

Sec. 205.

(a)Establishment

Subject to the availability
of appropriations, the Secretary shall establish in the Department of Education
a Rehabilitation Research Advisory Council (referred to in this section as the
"Council") composed of 12 members appointed by the Secretary.

(b)Duties

The Council shall advise
the Director with respect to research priorities and the development and revision
of the 5-year plan required by section 202(h).

(c)Qualifications

Members of the Council
shall be generally representative of the community of rehabilitation professionals,
the community of rehabilitation researchers, the community of individuals with
disabilities, and the individuals' representatives. At least one-half of the
members shall be individuals with disabilities or the individuals' representatives.

(d)Terms of
Appointment

(1)Length of
term

Each member of the Council
shall serve for a term of up to 3 years, determined by the Secretary, except
that-

(A) a member appointed
to fill a vacancy occurring prior to the expiration of the term for which a
predecessor was appointed, shall be appointed for the remainder of such term;
and

(B) the terms of
service of the members initially appointed shall be (as specified by the Secretary)
for such fewer number of years as will provide for the expiration of terms on
a staggered basis.

(2)Number of
terms

No member of the Council
may serve more than two consecutive full terms. Members may serve after the
expiration of their terms until their successors have taken office.

(e)Vacancies

Any vacancy occurring in
the membership of the Council shall be filled in the same manner as the original
appointment for the position being vacated. The vacancy shall not affect the
power of the remaining members to execute the duties of the Council.

(f) Payment and Expenses

(1) Payment

Each member of the Council
who is not an officer or full-time employee of the Federal Government shall
receive a payment of $150 for each day (including travel time) during which
the member is engaged in the performance of duties for the Council. All members
of the Council who are officers or full-time employees of the United States
shall serve without compensation in addition to compensation received for their
services as officers or employees of the United States.

(2) Travel expenses

Each member of the Council
may receive travel expenses, including per diem in lieu of subsistence, as authorized
by section 5703 of title 5, United States Code, for employees serving intermittently
in the Government service, for each day the member is engaged in the performance
of duties away from the home or regular place of business of the member.

(g) Detail of Federal Employees

On the request of the Council,
the Secretary may detail, with or without reimbursement, any of the personnel
of the Department of Education to the Council to assist the Council in carrying
out its duties. Any detail shall not interrupt or otherwise affect the civil
service status or privileges of the Federal employee.

(h) Technical Assistance

On the request of the Council,
the Secretary shall provide such technical assistance to the Council as the
Council determines to be necessary to carry out its duties.

(i)Termination

Section 14 of the Federal
Advisory Committee Act (5 U.S.C. App.) shall not apply with respect to the Council.

TITLE III-PROFESSIONAL DEVELOPMENT AND SPECIAL PROJECTS AND DEMONSTRATIONS

Sec. 301. Declaration of Purpose and Competitive Basis of Grants and Contracts

(a)Purpose

It is the purpose of this
title to authorize grants and contracts to-

(1)(A) provide academic
training to ensure that skilled personnel are available to provide rehabilitation
services to individuals with disabilities through vocational, medical, social,
and psychological rehabilitation programs (including supported employment programs),
through economic and business development programs, through independent living
services programs, and through client assistance programs; and

(2) conduct special
projects and demonstrations that expand and improve the provision of rehabilitation
and other services (including those services provided through community rehabilitation
programs) authorized under this Act, or that otherwise further the purposes
of this Act, including related research and evaluation;

(3) provide vocational
rehabilitation services to individuals with disabilities who are migrant or
seasonal farmworkers;

(4) initiate recreational
programs to provide recreational activities and related experiences for individuals
with disabilities to aid such individuals in employment, mobility, socialization,
independence, and community integration; and

(5) provide training
and information to individuals with disabilities and the individuals' representatives,
and other appropriate parties to develop the skills necessary for individuals
with disabilities to gain access to the rehabilitation system and statewide
workforce investment systems and to become active decisionmakers in the rehabilitation
process.

(b)Competitive
Basis of Grants and Contracts

The Secretary shall ensure that all grants and contracts are awarded under
this title on a competitive basis.

Sec. 302. Training

(a)Grants and
Contracts for Personnel Training

(1)Authority

The Commissioner shall
make grants to, and enter into contracts with, States and public or nonprofit
agencies and organizations (including institutions of higher education) to pay
part of the cost of projects to provide training, traineeships, and related
activities, including the provision of technical assistance, that are designed
to assist in increasing the numbers of, and upgrading the skills of, qualified
personnel (especially rehabilitation counselors) who are trained in providing
vocational, medical, social, and psychological rehabilitation services, who
are trained to assist individuals with communication and related disorders,
who are trained to provide other services provided under this Act, to individuals
with disabilities, and who may include-

(A) personnel specifically
trained in providing employment assistance to individuals with disabilities
through job development and job placement services;

(B) personnel specifically
trained to identify, assess, and meet the individual rehabilitation needs of
individuals with disabilities, including needs for rehabilitation technology;

(C) personnel specifically
trained to deliver services to individuals who may benefit from receiving independent
living services;

(E) personnel specifically
trained to deliver services, through supported employment programs, to individuals
with a most significant disability; and

(F) personnel specifically
trained to deliver services to individuals with disabilities pursuing self-employment,
business ownership, and telecommuting; and

(G) personnel trained
in performing other functions necessary to the provision of vocational, medical,
social, and psychological rehabilitation services, and other services provided
under this Act.

(2)Authority
to provide scholarships

Grants and contracts under paragraph (1) may be expended for scholarships and
may include necessary stipends and allowances.

(3)Related federal
statutes

In carrying out this subsection,
the Commissioner may make grants to and enter into contracts with States and
public or nonprofit agencies and organizations, including institutions of higher
education, to furnish training regarding provisions of Federal statutes, including
section 504, title I of the Americans with Disabilities Act of 1990 (42 U.S.C.
12111 et seq.), and the provisions of titles II and XVI of the Social Security
Act (42 U.S.C. 401 et seq. and 1381 et seq.), that are related to work incentives
for individuals with disabilities.

(4)Training
for statewide workforce systems personnel

The Commissioner may make
grants to and enter into contracts under this subsection with States and public
or nonprofit agencies and organizations, including institutions of higher education,
to furnish training to personnel providing services to individuals with disabilities
under title I of the Workforce Investment Act of 1998. Under this paragraph,
personnel may be trained-

(A) in evaluative
skills to determine whether an individual with a disability may be served by
the State vocational rehabilitation program or another component of a statewide
workforce investment system; or

(B) to assist individuals
with disabilities seeking assistance through one-stop delivery systems described
in section 134(c) of the Workforce Investment Act of 1998.

(5)Joint funding

Training and other activities
provided under paragraph (4) for personnel may be jointly funded with the Department
of Labor, using funds made available under title I of the Workforce Investment
Act of 1998.

The Commissioner may make
grants to, and enter into contracts with, States and public or nonprofit agencies
and organizations (including institutions of higher education) to pay part of
the costs of academic training projects to provide training that leads to an
academic degree or academic certificate. In making such grants or entering into
such contracts, the Commissioner shall target funds to areas determined under
subsection (e) to have shortages of qualified personnel.

(I) services to
individuals with specific disabilities or individuals with disabilities who
have specific impediments to rehabilitation, including individuals who are members
of populations that are unserved or underserved by programs under this Act;

(II) job development
and job placement services to individuals with disabilities;

(III) supported
employment services, including services of employment specialists for individuals
with disabilities;

(IV) specialized
services for individuals with significant disabilities; or

(V) recreation for
individuals with disabilities;

(iii) projects to
train personnel in other fields contributing to the rehabilitation of individuals
with disabilities; and

(iv) projects to
train personnel in the use, applications, and benefits of rehabilitation technology.

(2)Application

No grant shall be awarded
or contract entered into under this subsection unless the applicant has submitted
to the Commissioner an application at such time, in such form, in accordance
with such procedures, and including such information as the Secretary may require,
including-

(A) a description
of how the designated State unit or units will participate in the project to
be funded under the grant or contract, including, as appropriate, participation
on advisory committees, as practicum sites, in curriculum development, and in
other ways so as to build closer relationships between the applicant and the
designated State unit and to encourage students to pursue careers in public
vocational rehabilitation programs;

(B) the identification
of potential employers that provide employment that meets the requirements of
paragraph (5)(A)(i); and

(C) an assurance
that data on the employment of graduates or trainees who participate in the
project is accurate.

(3)Limitation

(A)In general

Except as provided in subparagraph
(B), no grant or contract under this subsection may be used to provide any one
course of study to an individual for a period of more than 4 years.

(B)Exception

If a grant or contract
recipient under this subsection determines that an individual has a disability
which seriously affects the completion of training under this subsection, the
grant or contract recipient may extend the period referred to in subparagraph
(A).

(4)Authority
to provide scholarships

Grants and contracts under
paragraph (1) may be expanded to provide services that include the provision
of scholarships and necessary stipends and allowances.

(5)Agreements

(A)Contents

A recipient of a grant
or contract under this subsection shall provide assurances to the Commissioner
that each individual who receives a scholarship, for any academic year beginning
after June 1, 1992, utilizing funds provided under such grant or contract shall
enter into an agreement with the recipient under which the individual shall-

(i) maintain employment-

(I) in a nonprofit
rehabilitation agency or related agency or in a State rehabilitation agency
or related agency, including a professional corporation or professional practice
group through which the individual has a service arrangement with the designated
State agency;

(II) on a full-
or part-time basis; and

(III) for a period of not less than the full-time equivalent of 2 years
for each year for which assistance under this section was received by the individual,
within a period, beginning after the recipient completes the training for which
the scholarship was awarded, of not more than the sum of the number of years
in the period described in subclause (III) and 2 additional years; and

(ii) repay all or
part of any scholarship received, plus interest, if the individual does not
fulfill the requirements of clause (i), except as the Commissioner by regulation
may provide for repayment exceptions and deferrals.

(B)Enforcement

The Commissioner shall
be responsible for the enforcement of each agreement entered into under subparagraph
(A) upon completion of the training involved under such subparagraph.

(c)Grants to
Historically Black Colleges and Universities

The Commissioner, in carrying
out this section, shall make grants to historically Black colleges and universities
and other institutions of higher education whose minority student enrollment
is at least 50 percent of the total enrollment of the institution.

(d)Application

A grant may not be awarded
to a State or other organization under this section unless the State or organization
has submitted an application to the Commissioner at such time, in such form,
in accordance with such procedures, and containing such information as the Commissioner
may require. Any such application shall include a detailed description of strategies
that will be utilized to recruit and train individuals so as to reflect the
diverse populations of the United States as part of the effort to increase the
number of individuals with disabilities, and individuals who are from linguistically
and culturally diverse backgrounds, who are available to provide rehabilitation
services.

(e)Evaluation
and Collection of Data

The Commissioner shall
evaluate the impact of the training programs conducted under this section, and
collect information on the training needs of, and data on shortages of qualified
personnel necessary to provide services to individuals with disabilities. The
Commissioner shall prepare and submit to Congress, by September 30 of each fiscal
year, a report setting forth and justifying in detail how the funds made available
for training under this section for the fiscal year prior to such submission
are allocated by professional discipline and other program areas. The report
shall also contain findings on such personnel shortages, how funds proposed
for the succeeding fiscal year will be allocated under the President's budget
proposal, and how the findings on personnel shortages justify the allocations.

(f)Grants for
the Training of Interpreters

(1)Authority

(A)In general

For the purpose of training
a sufficient number of qualified interpreters to meet the communications needs
of individuals who are deaf or hard of hearing, and individuals who are deaf-blind,
the Commissioner, acting through a Federal office responsible for deafness and
communicative disorders, may award grants to public or private nonprofit agencies
or organizations to pay part of the costs-

(i) for the establishment
of interpreter training programs; or

(ii) to enable such
agencies or organizations to provide financial assistance for ongoing interpreter
training programs.

(B)Geographic
areas

The Commissioner shall
award grants under this subsection for programs in geographic areas throughout
the United States that the Commissioner considers appropriate to best carry
out the objectives of this section.

(C)Priority

In awarding grants under
this subsection, the Commissioner shall give priority to public or private nonprofit
agencies or organizations with existing programs that have a demonstrated capacity
for providing interpreter training services.

(D)Funding
The Commissioner may award grants under this subsection through the use of-

(i) amounts appropriated
to carry out this section; or

(ii) pursuant to an agreement with the Director of the Office of the
Special Education Program (established under section 603 of the Individuals
with Disabilities Education Act (as amended by section 101 of the Individuals
with Disabilities Education Act Amendments of 1997 (Public Law 105-17)), amounts
appropriated under section 686 of the Individuals with Disabilities Education
Act.

(2)Application

A grant may not be awarded
to an agency or organization under paragraph (1) unless the agency or organization
has submitted an application to the Commissioner at such time, in such form,
in accordance with such procedures, and containing such information as the Commissioner
may require, including-

(A) a description
of the manner in which an interpreter training program will be developed and
operated during the 5-year period following the date on which a grant is received
by the applicant under this subsection;

(B) a demonstration
of the applicant's capacity or potential for providing training for interpreters
for individuals who are deaf or hard of hearing, and individuals who are deaf-blind;

(C) assurances that
any interpreter trained or retrained under a program funded under the grant
will meet such minimum standards of competency as the Commissioner may establish
for purposes of this subsection; and

(D) such other information
as the Commissioner may require.

(g)Technical
Assistance and In-Service Training

(1)Technical
assistance

The Commissioner is authorized
to provide technical assistance to State designated agencies and community rehabilitation
programs, directly or through contracts with State designated agencies or nonprofit
organizations.

(2)Compensation

An expert or consultant
appointed or serving under contract pursuant to this section shall be compensated
at a rate, subject to approval of the Commissioner, that shall not exceed the
daily equivalent of the rate of pay for level 4 of the Senior Executive Service
Schedule under section 5382 of title 5, United States Code. Such an expert or
consultant may be allowed travel and transportation expenses in accordance with
section 5703 of title 5, United States Code.

(3)In-service
training of rehabilitation personnel

(A)Projects

Subject to subparagraph
(B), at least 15 percent of the sums appropriated to carry out this section
shall be allocated to designated State agencies to be used, directly or indirectly,
for projects for in-service training for rehabilitation personnel, consistent
with the needs identified through the comprehensive system for personnel development
required by section 101(a)(7), including projects designed-

(i) to address recruitment
and retention of qualified rehabilitation professionals;

(ii) to provide
for succession planning;

(iii) to provide for leadership development and capacity building; and

(iv) for fiscal
years 1999 and 2000, to provide training regarding the Workforce Investment
Act of 1998 and the amendments to this Act made by the Rehabilitation Act Amendments
of 1998.

(B)Limitation

If the allocation to designated
State agencies required by subparagraph (A) would result in a lower level of
funding for projects being carried out on the date of enactment of the Rehabilitation
Act Amendments of 1998 by other recipients of funds under this section, the
Commissioner may allocate less than 15 percent of the sums described in subparagraph
(A) to designated State agencies for such in-service training.

(h)Provision
of Information

The Commissioner, subject
to the provisions of section 306, may require that recipients of grants or contracts
under this section provide information, including data, with regard to the impact
of activities funded under this section.

(i)Authorization
of Appropriations

There are authorized to
be appropriated to carry out this section such sums as may be necessary for
each of the fiscal years 1999 through 2003.

Sec. 303. Demonstration
and Training Programs

(a)Demonstration
Projects To Increase Client Choice

(1)Grants

The Commissioner may make
grants to States and public or nonprofit agencies and organizations to pay all
or part of the costs of projects to demonstrate ways to increase client choice
in the rehabilitation process, including the selection of providers of vocational
rehabilitation services.

(2)Use of funds

An entity that receives
a grant under this subsection shall use the grant only-

(A) for activities
that are directly related to planning, operating, and evaluating the demonstration
projects; and

(B) to supplement, and not supplant, funds made available from Federal
and non-Federal sources for such projects.

(3)Application

Any eligible entity that
desires to receive a grant under this subsection shall submit an application
at such time, in such manner, and containing such information and assurances
as the Commissioner may require, including-

(A) a description
of-

(i) how the entity
intends to promote increased client choice in the rehabilitation process, including
a description, if appropriate, of how an applicant will determine the cost of
any service or product offered to an eligible client;

(ii) how the entity
intends to ensure that any vocational rehabilitation service or related service
is provided by a qualified provider who is accredited or meets such other quality
assurance and cost-control criteria as the State may establish; and

(iii) the outreach
activities to be conducted by the applicant to obtain eligible clients; and

(B) assurances that
a written plan will be established with the full participation of the client,
which plan shall, at a minimum, include-

(i) a statement
of the vocational rehabilitation goals to be achieved;

(ii) a statement
of the specific vocational rehabilitation services to be provided, the projected
dates for their initiation, and the anticipated duration of each such service;
and

(iii) objective
criteria, an evaluation procedure, and a schedule, for determining whether such
goals are being achieved.

(4)Award of
grants

In selecting entities to
receive grants under paragraph (1), the Commissioner shall take into consideration-

(A) the diversity
of strategies used to increase client choice, including selection among qualified
service providers;

(B) the geographic
distribution of projects; and

(C) the diversity of clients to be served.

(5)Records

Entities that receive grants
under paragraph (1) shall maintain such records as the Commissioner may require
and comply with any request from the Commissioner for such records.

(6)Direct services

At least 80 percent of
the funds awarded for any project under this subsection shall be used for direct
services, as specifically chosen by eligible clients.

(7)Evaluation

The Commissioner may conduct
an evaluation of the demonstration projects with respect to the services provided,
clients served, client outcomes obtained, implementation issues addressed, the
cost-effectiveness of the project, and the effects of increased choice on clients
and service providers. The Commissioner may reserve funds for the evaluation
for a fiscal year from the amounts appropriated to carry out projects under
this section for the fiscal year.

(8)Definitions

For the purposes of this
subsection:

(A)Direct services

The term "direct services"
means vocational rehabilitation services, as described in section 103(a).

(B)Eligible
client

The term "eligible
client" means an individual with a disability, as defined in section 7(20)(A),
who is not currently receiving services under an individualized plan for employment
established through a designated State unit.

(b)Special
Demonstration Programs

(1)Grants;
contracts

The Commissioner, subject
to the provisions of section 306, may provide grants to, or enter into contracts
with, eligible entities to pay all or part of the cost of programs that expand
and improve the provision of rehabilitation and other services authorized under
this Act or that further the purposes of the Act, including related research
and evaluation activities.

(2)Eligible
entities; terms and conditions

(A)Eligible
entities

To be eligible to receive
a grant, or enter into a contract, under paragraph (1), an entity shall be a
State vocational rehabilitation agency, community rehabilitation program, Indian
tribe or tribal organization, or other public or nonprofit agency or organization,
or as the Commissioner determines appropriate, a for-profit organization. The
Commissioner may limit competitions to 1 or more types of organizations described
in this subparagraph.

(B)Terms and
conditions

A grant or contract under
paragraph (1) shall contain such terms and conditions as the Commissioner may
require.

(3)Application

An eligible entity that
desires to receive a grant, or enter into a contract, under paragraph (1) shall
submit an application to the Secretary at such time, in such form, and containing
such information and assurances as the Commissioner may require, including,
if the Commissioner determines appropriate, a description of how the proposed
project or demonstration program-

(A) is based on
current research findings, which may include research conducted by the National
Institute on Disability and Rehabilitation Research, the National Institutes
of Health, and other public or private organizations; and

(B) is of national
significance.

(4)Types of
projects

The programs that may be
funded under this subsection may include-

(A) special projects
and demonstrations of service delivery;

(B) model demonstration
projects;

(C) technical assistance
projects;

(D) systems change
projects;

(E) special studies
and evaluations; and

(F) dissemination
and utilization activities.

(5)Priority
for competitions

(A)In general

In announcing competitions
for grants and contracts under this subsection, the Commissioner shall give
priority consideration to-

(i) special projects
and demonstration programs of service delivery for adults who are either low-functioning
and deaf or low-functioning and hard of hearing;

(ii) supported employment,
including community-based supported employment programs to meet the needs of
individuals with the most significant disabilities or to provide technical assistance
to States and community organizations to improve and expand the provision of
supported employment services; and

(vii) Expansion
of employment opportunities for individuals with disabilities.

(viii) Systems
change projects to promote meaningful access of individuals with disabilities
to employment-related services under title I of the Workforce Investment Act
of 1998 and under other Federal laws.

(x) The demonstration
of the effectiveness of early intervention activities in improving employment
outcomes.

(xi) Alternative
methods of providing affordable transportation services to individuals with
disabilities who are employed, seeking employment, or receiving vocational rehabilitation
services from public or private organizations and who reside in geographic areas
in which public transportation or paratransit service is not available.

(6)Use of funds
for continuation awards

The Commissioner may use
funds made available to carry out this section for continuation awards for projects
that were funded under sections 12 and 311 (as such sections were in effect
on the day before the date of the enactment of the Rehabilitation Act Amendments
of 1998).

(c)Parent Information
and Training Program

(1)Grants

The Commissioner is authorized
to make grants to private nonprofit organizations for the purpose of establishing
programs to provide training and information to enable individuals with disabilities,
and the parents, family members, guardians, advocates, or other authorized representatives
of the individuals to participate more effectively with professionals in meeting
the vocational, independent living, and rehabilitation needs of individuals
with disabilities. Such grants shall be designed to meet the unique training
and information needs of the individuals described in the preceding sentence,
who live in the area to be served, particularly those who are members of populations
that have been unserved or underserved by programs under this Act.

(2)Use of grants

An organization that receives
a grant to establish training and information programs under this subsection
shall use the grant to assist individuals with disabilities, and the parents,
family members, guardians, advocates, or authorized representatives of the individuals-

(A) to better understand
vocational rehabilitation and independent living programs and services;

(B) to provide
followup support for transition and employment programs;

(C) to communicate
more effectively with transition and rehabilitation personnel and other relevant
professionals;

(D) to provide support
in the development of the individualized plan for employment;

(E) to provide
support and expertise in obtaining information about rehabilitation and independent
living programs, services, and resources that are appropriate; and

(F) to understand
the provisions of this Act, particularly provisions relating to employment,
supported employment, and independent living.

(3)Award of
grants

The Commissioner shall
ensure that grants under this subsection-

(A) shall be distributed
geographically to the greatest extent possible throughout all States; and

(B) shall be targeted
to individuals with disabilities, and the parents, family members, guardians,
advocates, or authorized representatives of the individuals, in both urban and
rural areas or on a State or regional basis.

(4)Eligible
organizations

In order to receive a grant
under this subsection, an organization-

(A) shall submit
an application to the Commissioner at such time, in such manner, and containing
such information as the Commissioner may require, including information demonstrating
the capacity and expertise of the organization-

(i) to coordinate
training and information activities with Centers for Independent Living;

(ii) to coordinate
and work closely with parent training and information centers established pursuant
to section 682(a) of the Individuals with Disabilities Education Act (as added
by section 101 of the Individuals with Disabilities Education Act Amendments
of 1997; Public Law 105-17); and

(iii) to effectively
conduct the training and information activities authorized under this subsection;

(B)(i) shall be
governed by a board of directors-

(I) that includes
professionals in the field of vocational rehabilitation; and

(II) on which a
majority of the members are individuals with disabilities or the parents, family
members, guardians, advocates, or authorized representatives of the individuals;
or

(ii)(I) shall have
a membership that represents the interests of individuals with disabilities;
and

(II) shall establish
a special governing committee that meets the requirements specified in subclauses
(I) and (II) of clause (i) to operate a training and information program under
this subsection; and

(C) shall serve
individuals with a full range of disabilities, and the parents, family members,
guardians, advocates, or authorized representatives of the individuals.

(5)Consultation

Each organization carrying
out a program receiving assistance under this subsection shall consult with
appropriate agencies that serve or assist individuals with disabilities, and
the parents, family members, guardians, advocates, or authorized representatives
of the individuals, located in the jurisdiction served by the program.

(6)Coordination

The Commissioner shall
provide coordination and technical assistance by grant or cooperative agreement
for establishing, developing, and coordinating the training and information
programs. To the extent practicable, such assistance shall be provided by the
parent training and information centers established pursuant to section 682(a)
of the Individuals with Disabilities Education Act (as added by section 101
of the Individuals with Disabilities Education Act Amendments of 1997; Public
Law 105-17).

(7)Review

(A)Quarterly
review

The board of directors
or special governing committee of an organization receiving a grant under this
subsection shall meet at least once in each calendar quarter to review the training
and information program, and each such committee shall directly advise the governing
board regarding the views and recommendations of the committee.

(B)Review for
grant renewal

If a nonprofit private
organization requests the renewal of a grant under this subsection, the board
of directors or the special governing committee shall prepare and submit to
the Commissioner a written review of the training and information program conducted
by the organization during the preceding fiscal year.

(d)Braille
Training Programs

(1)Establishment

The Commissioner shall
make grants to, and enter into contracts with, States and public or nonprofit
agencies and organizations, including institutions of higher education, to pay
all or part of the cost of training in the use of braille for personnel providing
vocational rehabilitation services or educational services to youth and adults
who are blind.

(2)Projects

Such grants shall be used
for the establishment or continuation of projects that may provide-

(A) development
of braille training materials;

(B) in-service or
pre-service training in the use of braille, the importance of braille literacy,
and methods of teaching braille to youth and adults who are blind; and

(C) activities to
promote knowledge and use of braille and nonvisual access technology for blind
youth and adults through a program of training, demonstration, and evaluation
conducted with leadership of experienced blind individuals, including the use
of comprehensive, state-of-the-art technology.

(3)Application

To be eligible to receive
a grant, or enter into a contract, under paragraph (1), an agency or organization
shall submit an application to the Commissioner at such time, in such manner,
and containing such information as the Commissioner may require.

(e)Authorization
of Appropriations

There are authorized to
be appropriated to carry out this section such sums as may be necessary for
each of the fiscal years 1999 through 2003.

Sec. 304. Migrant and Seasonal
Farmworkers

(a)Grants

(1)Authority

The Commissioner, subject to the provisions of section 306, may make grants
to eligible entities to pay up to 90 percent of the cost of projects or demonstration
programs for the provision of vocational rehabilitation services to individuals
with disabilities who are migrant or seasonal farmworkers, as determined in
accordance with rules prescribed by the Secretary of Labor, and to the family
members who are residing with such individuals (whether or not such family members
are individuals with disabilities).

(2)Eligible
entities

To be eligible to receive
a grant under paragraph (1), an entity shall be-

(A) a State designated
agency;

(B) a nonprofit
agency working in collaboration with a State agency described in subparagraph
(A); or

(C) a local agency
working in collaboration with a State agency described in subparagraph (A).

(3)Maintenance
and transportation

(A)In general

Amounts provided under
a grant under this section may be used to provide for the maintenance of and
transportation for individuals and family members described in paragraph (1)
as necessary for the rehabilitation of such individuals.

(B)Requirement

Maintenance payments under
this paragraph shall be provided in a manner consistent with any maintenance
payments provided to other individuals with disabilities in the State under
this Act.

(4)Assurance
of cooperation

To be eligible to receive
a grant under this section an entity shall provide assurances (satisfactory
to the Commissioner) that in the provision of services under the grant there
will be appropriate cooperation between the grantee and other public or nonprofit
agencies and organizations having special skills and experience in the provision
of services to migrant or seasonal farmworkers or their families.

(5)Coordination
with other programs

The Commissioner shall administer this section in coordination with other programs
serving migrant and seasonal farmworkers, including programs under title I of
the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.),
section 330 of the Public Health Service Act (42 U.S.C. 254b), the Migrant and
Seasonal Agricultural Worker Protection Act (29 U.S.C. 1801 et seq.), and the
Workforce Investment Act of 1998.

(b)Authorization
of Appropriations

There are authorized to
be appropriated such sums as may be necessary to carry out this section, for
each of the fiscal years 1999 through 2003.

Sec. 305. Recreational
Programs

(a)Grants

(1)Authority

(A)In general

The Commissioner, subject
to the provisions of section 306, shall make grants to States, public agencies,
and nonprofit private organizations to pay the Federal share of the cost of
the establishment and operation of recreation programs to provide individuals
with disabilities with recreational activities and related experiences to aid
in the employment, mobility, socialization, independence, and community integration
of such individuals.

(B)Recreation
programs

The recreation programs
that may be funded using assistance provided under a grant under this section
may include vocational skills development, leisure education, leisure networking,
leisure resource development, physical education and sports, scouting and camping,
4-H activities, construction of facilities for aquatic rehabilitation therapy,
music, dancing, handicrafts, art, and homemaking. When possible and appropriate,
such programs and activities should be provided in settings with peers who are
not individuals with disabilities.

(C)Design of
program

Programs and activities
carried out under this section shall be designed to demonstrate ways in which
such programs assist in maximizing the independence and integration of individuals
with disabilities.

(2)Maximum term
of grant

A grant under this section
shall be made for a period of not more than 3 years.

(3)Availability
of nongrant resources

(A)In general

A grant may not be made
to an applicant under this section unless the applicant provides assurances
that, with respect to costs of the recreation program to be carried out under
the grant, the applicant, to the maximum extent practicable, will make available
non-Federal resources (in cash or in-kind) to pay the non-Federal share of such
costs.

(B)Federal share

The Federal share of the
costs of the recreation programs carried out under this section shall be-

(i) with respect
to the first year in which assistance is provided under a grant under this section,
100 percent;

(ii) with respect
to the second year in which assistance is provided under a grant under this
section, 75 percent; and

(iii) with respect
to the third year in which assistance is provided under a grant under this section,
50 percent.

(4)Application

To be eligible to receive
a grant under this section, a State, agency, or organization shall submit an
application to the Commissioner at such time, in such manner, and containing
such information as the Commissioner may require, including a description of-

(A) the manner in
which the findings and results of the project to be funded under the grant,
particularly information that facilitates the replication of the results of
such projects, will be made generally available; and

(B) the manner in
which the service program funded under the grant will be continued after Federal
assistance ends.

(5)Level of
services

Recreation programs funded
under this section shall maintain, at a minimum, the same level of services
over a 3-year project period.

(6)Reports by
grantees

(A)Requirement

The Commissioner shall
require that each recipient of a grant under this section annually prepare and
submit to the Commissioner a report concerning the results of the activities
funded under the grant.

(B)Limitation

The Commissioner may not
make financial assistance available to a grant recipient for a subsequent year
until the Commissioner has received and evaluated the annual report of the recipient
under subparagraph (A) for the current year.

(b)Authorization
of Appropriations

There are authorized to
be appropriated to carry out this section, such sums as may be necessary for
each of the fiscal years 1999 through 2003.

Sec. 306. Measuring of
Project Outcomes and Performance

The Commissioner may require
that recipients of grants under this title submit information, including data,
as determined by the Commissioner to be necessary to measure project outcomes
and performance, including any data needed to comply with the Government Performance
and Results Act.

TITLE IV-NATIONAL COUNCIL ON DISABILITY

Establishment of National Council on Disability

Sec. 400. (a)(1)

(A) There is established
within the Federal Government a National Council on Disability (hereinafter
in this title referred to as the "National Council"), which shall
be composed of fifteen members appointed by the President, by and with the advice
and consent of the Senate.

(B) The President
shall select members of the National Council after soliciting recommendations
from representatives of-

(i) organizations
representing a broad range of individuals with disabilities; and

(ii) organizations
interested in individuals with disabilities.

(C) The members
of the National Council shall be individuals with disabilities, parents or guardians
of individuals with disabilities, or other individuals who have substantial
knowledge or experience relating to disability policy or programs. The members
of the National Council shall be appointed so as to be representative of individuals
with disabilities, national organizations concerned with individuals with disabilities,
providers and administrators of services to individuals with disabilities, individuals
engaged in conducting medical or scientific research relating to individuals
with disabilities, business concerns, and labor organizations. A majority of
the members of the National Council shall be individuals with disabilities.
The members of the National Council shall be broadly representative of minority
and other individuals and groups.

(2) The purpose
of the National Council is to promote policies, programs, practices, and procedures
that-

(A) guarantee equal
opportunity for all individuals with disabilities, regardless of the nature
or severity of the disability; and

(B) empower individuals
with disabilities to achieve economic self-sufficiency, independent living,
and inclusion and integration into all aspects of society.

(b)(1) Each member
of the National Council shall serve for a term of 3 years, except that the terms
of service of the members initially appointed after the date of enactment of
the Rehabilitation, Comprehensive Services, and Developmental Disabilities Amendments
of 1978 shall be (as specified by the President) for such fewer number of years
as will provide for the expiration of terms on a staggered basis.

(2)(A) No member
of the National Council may serve more than two consecutive full terms beginning
on the date of commencement of the first full term on the Council. Members may
serve after the expiration of their terms until their successors have taken
office.

(B) As used in this
paragraph, the term "full term" means a term of 3 years.

(3) Any member appointed
to fill a vacancy occurring before the expiration of the term for which such
member's predecessor was appointed shall be appointed only for the remainder
of such term.

(c) The President
shall designate the Chairperson from among the members appointed to the National
Council. The National Council shall meet at the call of the Chairperson, but
not less often than four times each year.

(d) Eight members
of the National Council shall constitute a quorum and any vacancy in the National
Council shall not affect its power to function.

Duties of National Council

Sec. 401. (a) The
National Council shall-

(1) provide advice
to the Director with respect to the policies and conduct of the National Institute
on Disability and Rehabilitation Research, including ways to improve research
concerning individuals with disabilities and the methods of collecting and disseminating
findings of such research;

(2) provide advice
to the Commissioner with respect to the policies of and conduct of the Rehabilitation
Services Administration;

(3) advise the President,
the Congress, the Commissioner, the appropriate Assistant Secretary of the Department
of Education, and the Director of the National Institute on Disability and Rehabilitation
Research on the development of the programs to be carried out under this Act;

(4) provide advice
regarding priorities for the activities of the Interagency Disability Coordinating
Council and review the recommendations of such Council for legislative and administrative
changes to ensure that such recommendations are consistent with the purposes
of the Council to promote the full integration, independence, and productivity
of individuals with disabilities;

(5) review and evaluate
on a continuing basis-

(A) policies, programs,
practices, and procedures concerning individuals with disabilities conducted
or assisted by Federal departments and agencies, including programs established
or assisted under this Act or under the Developmental Disabilities Assistance
and Bill of Rights Act; and

(B) all statutes
and regulations pertaining to Federal programs which assist such individuals
with disabilities;

in order to assess the
effectiveness of such policies, programs, practices, procedures, statutes, and
regulations in meeting the needs of individuals with disabilities;

(6) assess the extent
to which such policies, programs, practices, and procedures facilitate or impede
the promotion of the policies set forth in subparagraphs (A) and (B) of section
400(a)(2);

(7) gather information
about the implementation, effectiveness, and impact of the Americans with Disabilities
Act of 1990 (42 U.S.C. 12101 et seq.);

(8) make recommendations
to the President, the Congress, the Secretary, the Director of the National
Institute on Disability and Rehabilitation Research, and other officials of
Federal agencies or other Federal entities, respecting ways to better promote
the policies set forth in section 400(a)(2);

(9) provide to the
Congress on a continuing basis advice, recommendations, legislative proposals,
and any additional information that the National Council or the Congress deems
appropriate; and

(10) review and
evaluate on a continuing basis new and emerging disability policy issues affecting
individuals with disabilities at the Federal, State, and local levels, and in
the private sector, including the need for and coordination of adult services,
access to personal assistance services, school reform efforts and the impact
of such efforts on individuals with disabilities, access to health care, and
policies that operate as disincentives for the individuals to seek and retain
employment.

(b)(1) Not later
than October 31, 1998, and annually thereafter, the National Council shall prepare
and submit to the President and the appropriate committees of the Congress a
report entitled "National Disability Policy: A Progress Report".

(2) The report shall
assess the status of the Nation in achieving the policies set forth in section
400(a)(2), with particular focus on the new and emerging issues impacting on
the lives of individuals with disabilities. The report shall present, as appropriate,
available data on health, housing, employment, insurance, transportation, recreation,
training, prevention, early intervention, and education. The report shall include
recommendations for policy change.

(3) In determining
the issues to focus on and the findings, conclusions, and recommendations to
include in the report, the National Council shall seek input from the public,
particularly individuals with disabilities, representatives of organizations
representing a broad range of individuals with disabilities, and organizations
and agencies interested in individuals with disabilities.

Compensation of National
Council Members

Sec. 402. (a) Members
of the National Council shall be entitled to receive compensation at a rate
equal to the rate of pay for level 4 of the Senior Executive Service Schedule
under section 5382 of title 5, United States Code, including travel time, for
each day they are engaged in the performance of their duties as members of the
National Council.

(b) Members of
the National Council who are full-time officers or employees of the United States
shall receive no additional pay on account of their service on the National
Council except for compensation for travel expenses as provided under subsection
(c) of this section.

(c) While away
from their homes or regular places of business in the performance of services
for the National Council, members of the National Council shall be allowed travel
expenses, including per diem in lieu of subsistence, in the same manner as persons
employed intermittently in the Government service are allowed expenses under
section 5703 of title 5, United States Code.

Staff of National Council

Sec. 403. (a)(1)
The Chairperson of the National Council may appoint and remove, without regard
to the provisions of title 5, United States Code, governing appointments, the
provisions of chapter 75 of such title (relating to adverse actions), the provisions
of chapter 77 of such title (relating to appeals), or the provisions of chapter
51 and subchapter III of chapter 53 of such title (relating to classification
and General Schedule pay rates), an Executive Director to assist the National
Council to carry out its duties. The Executive Director shall be appointed from
among individuals who are experienced in the planning or operation of programs
for individuals with disabilities.

(2) The Executive
Director is authorized to hire technical and professional employees to assist
the National Council to carry out its duties.

(b)(1) The National
Council may procure temporary and intermittent services to the same extent as
is authorized by section 3109(b) of title 5, United States Code (but at rates
for individuals not to exceed the daily equivalent of the rate of pay for level
4 of the Senior Executive Service Schedule under section 5382 of title 5, United
States Code).

(2) The National
Council may-

(A) accept voluntary
and uncompensated services, notwithstanding the provisions of section 1342 of
title 31, United States Code;

(B) in the name
of the Council, solicit, accept, employ, and dispose of, in furtherance of this
Act, any money or property, real or personal, or mixed, tangible or nontangible,
received by gift, devise, bequest, or otherwise; and

(C) enter into contracts
and cooperative agreements with Federal and State agencies, private firms, institutions,
and individuals for the conduct of research and surveys, preparation of reports
and other activities necessary to the discharge of the Council's duties and
responsibilities.

(3) Not more than
10 per centum of the total amounts available to the National Council in each
fiscal year may be used for official representation and reception.

(c) The Administrator
of General Services shall provide to the National Council on a reimbursable
basis such administrative support services as the Council may request.

(d)(1) It shall
be the duty of the Secretary of the Treasury to invest such portion of the amounts
made available under subsection (a)(2)(B) as is not, in the Secretary's judgment,
required to meet current withdrawals. Such investments may be made only in interest-bearing
obligations of the United States or in obligations guaranteed as to both principal
and interest by the United States.

(2) The amounts
described in paragraph (1), and the interest on, and the proceeds from the sale
or redemption of, the obligations described in paragraph (1) shall be available
to the National Council to carry out this title.

Administrative Powers of
National Council

Sec. 404. (a) The
National Council may prescribe such bylaws and rules as may be necessary to
carry out its duties under this title.

(b) The National
Council may hold such hearings, sit and act at such times and places, take such
testimony, and receive such evidence as it deems advisable.

(c) The National
Council may appoint advisory committees to assist the National Council in carrying
out its duties. The members thereof shall serve without compensation.

(d) The National
Council may use the United States mails in the same manner and upon the same
conditions as other departments and agencies of the United States.

(e) The National
Council may use, with the consent of the agencies represented on the Interagency
Disability Coordinating Council, and as authorized in title V, such services,
personnel, information, and facilities as may be needed to carry out its duties
under this title, with or without reimbursement to such agencies.

Authorization of Appropriations

Sec. 405.

There are authorized to
be appropriated to carry out this title such sums as may be necessary for each
of the fiscal years 1999 through 2003.

TITLE V - RIGHTS AND ADVOCACY

Employment of Individuals with Disabilities

Sec. 501.(a) There
is established within the Federal Government an Interagency Committee on Employees
who are Individuals with Disabilities (hereinafter in this section referred
to as the "Committee"), comprised of such members as the President
may select, including the following (or their designees whose positions are
Executive Level IV or higher): the Chairman of the Equal Employment Opportunity
Commission, (hereafter in this section referred to as the "Commission"),
the Director of the Office of Personnel Management, the Secretary of Veterans
Affairs, the Secretary of Labor, the Secretary of Education, and the Secretary
of Health and Human Services. Either the Director of the Office of Personnel
Management and the Chairman of the Commission shall serve as co-chairpersons
of the Committee or the Director or Chairman shall serve as the sole chairperson
of the Committee, as the Director and Chairman jointly determine, from time
to time, to be appropriate. The resources of the President's Committees on Employment
of People With Disabilities and on Mental Retardation shall be made fully available
to the Committee. It shall be the purpose and function of the Committee

(1) to provide a
focus for Federal and other employment of individuals with disabilities, and
to review, on a periodic basis, in cooperation with the Commission, the adequacy
of hiring, placement, and advancement practices with respect to individuals
with disabilities, by each department, agency, and instrumentality in the executive
branch of Government, and to insure that the special needs of such individuals
are being met; and

(2) to consult with
the Commission to assist the Commission to carry out its responsibilities under
subsections (b), (c), and (d) of this section. On the basis of such review and
consultation, the Committee shall periodically make to the Commission such recommendations
for legislative and administrative changes as it deems necessary or desirable.
The Commission shall timely transmit to the appropriate committees of Congress
any such recommendation.

(b) Each department,
agency, and instrumentality (including the United States Postal Service and
Postal Rate Office) in the executive branch shall, within one hundred and eighty
days after the date of enactment of this Act, submit to the Commission and to
the Committee an affirmative action program plan for the hiring, placement,
and advancement of individuals with disabilities in such department, agency,
or instrumentality. Such plan shall include a description of the extent to which
and methods whereby the special needs of employees who are individuals with
disabilities are being met. Such plan shall be updated annually, and shall be
reviewed annually and approved by the Commission, if the Commission determines,
after consultation with the Committee, that such plan provides sufficient assurances,
procedures, and commitments to provide adequate hiring, placement, and advancement
opportunities for individuals with disabilities.

(c) The Commission,
after consultation with the Committee, shall develop and recommend to the Secretary
for referral to the appropriate State agencies, policies and procedures which
will facilitate the hiring, placement, and advancement in employment of individuals
who have received rehabilitation services under State vocational rehabilitation
programs, veterans' programs, or any other program for individuals with disabilities,
including the promotion of job opportunities for such individuals. The Secretary
shall encourage such State agencies to adopt and implement such policies and
procedures.

(d) The Commission,
after consultation with the Committee, shall, on June 30, 1974, and at the end
of each subsequent fiscal year, make a complete report to the appropriate committees
of the Congress with respect to the practices of and achievements in hiring,
placement, and advancement of individuals with disabilities by each department,
agency, and instrumentality and the effectiveness of the affirmative action
programs required by subsection (b) of this section, together with recommendations
as to legislation which have been submitted to the Commission under subsection
(a) of this section, or other appropriate action to insure the adequacy of such
practices. Such report shall also include an evaluation by the Committee of
the effectiveness of the activities of the Commission under subsection (b) and
(c) of this section.

(e) An individual
who, as part of an individualized plan for employment under a State plan approved
under this Act, participates in a program of unpaid work experience in a Federal
agency, shall not, by reason thereof, be considered to be a Federal employee
or to be subject to the provisions of law relating to Federal employment, including
those relating to hours of work, rates of compensation, leaves, unemployment
compensation, and Federal employee benefits.

(f)(1) The Secretary
of Labor and the Secretary of Education are authorized and directed to cooperate
with the President's Committee on Employment of People With Disabilities in
carry out its functions.

(2) In selecting
personnel to fill all positions on the President's Committee on Employment of
People With Disabilities, special consideration shall be given to qualified
individuals with disabilities.

(g) The standards used to determine whether this section has been violated
in a complaint alleging nonaffirmative action employment discrimination under
this section shall be the standards applied under title I of the Americans with
Disabilities Act of 1990 (42 U.S.C. 12111 et seq.) and the provisions of sections
501 through 504, and 510, of the Americans with Disabilities Act of 1990 (42
U.S.C. 12201-12204 and 12210), as such sections relate to employment.

Architectural and Transportation Barriers Compliance Board

Sec. 502.(a)(1)
There is established within the Federal Government the Architectural and Transportation
Barriers Compliance Board (hereinafter referred to as the "Access Board"
which shall be composed as follows:

(A) Thirteen members
shall be appointed by the President from among members of the general public
of whom at least a majority shall be individuals with disabilities.

(B) The remaining
members shall be heads of each of the following departments or agencies (or
their designees whose positions are executive level IV or higher):

(i) Department
of Health and Human Services.

(ii) Department
of Transportation

(iii) Department
of Housing and Urban Development

(iv) Department
of Labor

(v) Department
of the Interior

(vi) Department
of Defense

(vii) Department
of Justice

(viii) General
Services Administration

(ix) Department
of Veterans Affairs

(x) United States
Postal Service

(xi) Department
of Education

(xii) Department
of Commerce

The chairperson and vice-chairperson
of the Access Board shall be elected by majority vote of the members of the
Access Board to serve for terms of one year. When the chairperson is a member
of the general public, the vice-chairperson shall be a Federal official; and
when the chairperson is a Federal official, the vice-chairperson shall be a
member of the general public. Upon the expiration of the term as chairperson
of a member who is a Federal official, the subsequent chairperson shall be a
member of the general public; and vice versa.

(2)(A)(i) The term
of office of each appointed member of the Access Board shall be 4 years, except
as provided in clause (ii). Each year, the terms of office of at least three
appointed members of the Access Board shall expire.

(ii)(I) One member
appointed for a term beginning December 4, 1992 shall serve for a term of 3
years.

(II) One member
appointed for a term beginning December 4, 1992 shall serve for a term of 2
years.

(III) One member
appointed for a term beginning December 4, 1992 shall serve for a term of 1
year.

(IV) Members appointed
for terms beginning before December 4, 1992 shall serve for terms of 3 years.

(B) A member whose
term has expired may continue to serve until a successor has been appointed.

(C) A member appointed
to fill a vacancy shall serve for the remainder of the term to which that member's
predecessor was appointed.

(3) If any appointed
member of the Access Board becomes a Federal employee, such member may continue
as a member of the Access Board for not longer than the sixty-day period beginning
on the date the member becomes a Federal employee.

(4) No individual
appointed under paragraph (1)(A) of this subsection who has served as a member
of the Access Board may be reappointed to the Access Board more than once unless
such individual has not served on the Access Board for a period of two years
prior to the effective date of such individual's appointment.

(5)(A) Members of
the Access Board who are not regular full-time employees of the United States
shall, while serving on the business of the Access Board, be entitled to receive
compensation at rates fixed by the President, but not to exceed the daily equivalent
of the rate of pay for level IV of the Executive Schedule under section 5315
of title 5, United States Code, including travel time, for each day they are
engaged in the performance of their duties as members of the Access Board; and
shall be entitled to reimbursement for travel, subsistence, and other necessary
expenses incurred by them in carrying out their duties under this section.

(B) Members of
the Access Board who are employed by the Federal Government shall serve without
compensation, but shall be reimbursed for travel, subsistence, and other necessary
expenses incurred by them in carrying out their duties under this section.

(6)(A) The Access
Board shall establish such bylaws and other rules as may be appropriate to enable
the Access Board to carry out its functions under this Act.

(B) The bylaws
shall include quorum requirements. The quorum requirements shall provide that
(i) a proxy may not be counted for purposes of establishing a quorum, and (ii)
not less than half the members required for a quorum shall be members of the
general public appointed under paragraph (1)(A).

(b) It shall be
the function of the Access Board to -

(1) ensure compliance
with the standards prescribed pursuant to the Act entitled "An Act to ensure
that certain buildings financed with Federal funds are so designed and constructed
as to be accessible to the physically handicapped", approved August 12,
1968, (commonly known as the Architectural Barriers Act of 1968; 42 U.S.C. 4151
et seq.) (including the application of such Act to the United States Postal
Service), including enforcing all standards under such Act, and ensuring that
all waivers and modifications to the standards are based on findings of fact
and are not inconsistent with the provisions of this section;

(2) develop advisory
information for, and provide appropriate technical assistance to, individuals
or entities with rights or duties under regulations prescribed pursuant to this
title or titles II and III of the Americans with Disabilities Act of 1990 (42
U.S.C. 12131 et seq. and 12181 et seq.) with respect to overcoming architectural,
transportation, and communication barriers;

(3) establish and
maintain-

(A) minimum guidelines
and requirements for the standards issued pursuant to the Act commonly known
as the Architectural Barriers Act of 1968;

(B) minimum guidelines
and requirements for the standards issued pursuant to titles II and III of the
Americans with Disabilities Act of 1990;

(C) guidelines for
accessibility of telecommunications equipment and customer premises equipment
under section 255 of the Telecommunications Act of 1934 (47 U.S.C. 255); and

(5) investigate
and examine alternative approaches to the architectural, transportation, communication,
and attitudinal barriers confronting individuals with disabilities, particularly
with respect to telecommunications devices, public buildings and monuments,
parks and parklands, public transportation (including air, water, and surface
transportation, whether interstate, foreign, intrastate, or local), and residential
and institutional housing;

(6) determine what
measures are being taken by Federal, State, and local governments and by other
public or nonprofit agencies to eliminate the barriers described in paragraph
(5);

(7) promote the
use of the International Accessibility Symbol in all public facilities that
are in compliance with the standards prescribed by the Administrator of General
Services, the Secretary of Defense, and the Secretary of Housing and Urban Development
pursuant to the Act commonly known as the Architectural Barriers Act of 1968;

(8) make to the
President and to the Congress reports that shall describe in detail the results
of its investigations under paragraphs (5) and (6);

(9) make to the
President and to the Congress such recommendations for legislative changes as
the Access Board determines to be necessary or desirable to eliminate the barriers
described in paragraph (5);

(10) ensure that
public conveyances, including rolling stock, are readily accessible to, and
usable by, individuals with physical disabilities; and

(11) carry out the
responsibilities specified for the Access Board in section 508.

(c) The Access
Board shall also

(1)(A) determine
how and to what extent transportation barriers impede the mobility of individuals
with disabilities and aged individuals with disabilities and consider ways in
which travel expenses in connection with transportation to and from work for
individuals with disabilities can be met or subsidized when such individuals
are unable to use mass transit systems or need special equipment in private
transportation, and

(B) consider the
housing needs of individuals with disabilities;

(2) determine what
measures are being taken, especially by public and other nonprofit agencies
and groups having an interest in and a capacity to deal with such problems,

(A) to eliminate
barriers from public transportation systems (including vehicles used in such
systems), and to prevent their incorporation in new or expended transportation
systems, and

(B) to make housing
available and accessible to individuals with disabilities or to meet sheltered
housing needs; and (3) prepare plans and proposals for such further actions
as may be necessary to the goals of adequate transportation and housing for
individuals with disabilities, including proposals for bringing together in
a cooperative effort, agencies, organizations, and groups already working toward
such goals or whose cooperation is essential to effective and comprehensive
action.

(d)(1) The Access
Board shall conduct investigations, hold public hearings, and issue such orders
as it deems necessary to ensure compliance with the provisions of the Acts cited
in subsection (b). Except as provided in paragraph (3) of subsection (e), the
provisions of subchapter II of chapter 5, and chapter 7 of title 5, United States
Code, shall apply to procedures under this subsection, and an order of compliance
issued by the Access Board shall be the final order for purposes of judicial
review. Any such order affecting any Federal department, agency, or instrumentality
of the United States shall be final and binding on such department, agency,
or instrumentality. An order of compliance may include the withholding or suspension
of Federal funds with respect to any building or public conveyance or rolling
stock found not to be in compliance with standards enforced under this section.
Pursuant to chapter 7 of title 5, United States Code, any complainant or participant
in a proceeding under this subsection may obtain review of a final order issued
in such proceeding.

(2) The Executive
Director is authorized, at the direction of the Access Board -

(A) to bring a
civil action in any appropriate United States district court to enforce, in
whole or in part, any final order of the Access Board under this subsection;
and

(B) to intervene,
appear, and participate, or to appear as amicus curiae, in any court of the
United States or in any court of a State in civil actions that relate to this
section or to the Architectural Barriers Act of 1968. Except as provided in
section 518(a) of title 28, United States Code, relating to litigation before
the Supreme Court, the executive director may appear for and represent the Access
Board in any civil litigation brought under this section.

(e)(1) There shall
be appointed by the Access Board an executive director and such other professional
and clerical personnel as are necessary to carry out its function under this
Act. The Access Board is authorized to appoint as many hearing examiners as
are necessary for proceedings required to be conducted under this section. The
provisions applicable to hearing examiners appointed under section 3105 of title
5, United States Code, shall apply to hearing examiners appointed under this
subsection.

(2) The Executive
Director shall exercise general supervision over all personnel employed by the
Access Board (other than hearing examiners and their assistants). The Executive
Director shall have final authority on behalf of the Access Board, with respect
to the investigation of alleged noncompliance and in the issuance of formal
complaints before the Access Board, and shall have such other duties as the
Access Board may prescribe.

(3) For the purpose of this section, an order of compliance issued by
a hearing examiner shall be deemed to be an order of the Access Board and shall
be the final order for the purpose of judicial review.

(f)(1)(A) In carrying
out the technical assistance responsibilities of the Access Board under this
section, the Board may enter into an interagency agreement with another Federal
department or agency.

(B) Any funds appropriated to such a department or agency for the purpose
of providing technical assistance may be transferred to the Access Board. Any
funds appropriated to the Access Board for the purpose of providing such technical
assistance may be transferred to such department or agency.

(C) The Access Board
may arrange to carry out the technical assistance responsibilities of the Board
under this section through such other departments and agencies for such periods
as the Board determines to be appropriate.

(D) The Access
Board shall establish a procedure to ensure separation of its compliance and
technical assistance responsibilities under this section.

(2) The departments
or agencies specified in subsection (a) of this section shall make available
to the Access Board such technical, administrative, or other assistance as it
may require to carry out its functions under this section, and the Access Board
may appoint such other advisers, technical experts, and consultants as it deems
necessary to assist it in carrying out its functions under this section. Special
advisory and technical experts and consultants appointed pursuant to this paragraph
shall, while performing their functions under this section, be entitled to receive
compensation at rates fixed by the Chairperson, but not exceeding the daily
equivalent of the rate of pay for level 4 of the Senior Executive Service Schedule
under section 5382 of title 5, United States Code, including travel time, and
while serving away from their homes or regular places of business they may be
allowed travel expenses, including per diem in lieu of subsistence, as authorized
by section 5703 of such title 5 for persons in the Government service employed
intermittently.

(g)(1) The Access
Board shall, at the end of each fiscal year, report its activities during the
preceding fiscal year to the Congress. Such report shall include an assessment
of the extent of compliance with the Acts cited in subsection (b) of this section,
along with a description and analysis of investigations made and actions taken
by the Access Board, and the reports and recommendations described in paragraphs
(8) and (9) of such subsection.

(2) The Access Board shall, at the same time that the Access Board transmits
the report required under section 7(b) of the Act commonly known as the Architectural
Barriers Act of 1968 (42 U.S.C. 4157(b)), transmit the report to the Committee
on Education and the Workforce of the House of Representatives and the Committee
on Labor and Human Resources of the Senate.

(h)(1) The Access
Board may make grants to, or enter into contracts with, public or private organizations
to carry out its duties under subsections (b) and (c).

(2)(A) The Access
Board may accept, hold, administer, and utilize gifts, devises, and bequests
of property, both real and personal, for the purpose of aiding and facilitating
the functions of the Access Board under paragraphs (2) and (4) of subsection
(b). Gifts and bequests of money and proceeds from sales of other property received
as gifts, devises, or bequests shall be deposited in the Treasury and shall
be disbursed upon the order of the Chairperson. Property accepted pursuant to
this section, and the proceeds thereof, shall be used as nearly as possible
in accordance with the terms of the gifts, devises, or bequests. For purposes
of Federal income, estate, or gift taxes, property accepted under this section
shall be considered as a gift, devise, or bequest to the United States.

(B) The Access Board
shall publish regulations setting forth the criteria the Board will use in determining
whether the acceptance of gifts, devises, and bequests of property, both real
and personal, would reflect unfavorably upon the ability of the Board or any
employee to carry out the responsibilities or official duties of the Board in
a fair and objective manner, or would compromise the integrity of or the appearance
of integrity of a Government program or any official involved in that program.

(i) There are authorized
to be appropriated for the purpose of carrying out the duties and functions
of the Access Board under this section such sums as may be necessary for each
of the fiscal years 1999 through 2003.

Employment Under Federal
Contracts

Sec. 503.(a) Any
contract in excess of $10,000 entered into by any Federal department or agency
for the procurement of personal property and nonpersonal services (including
construction) for the United States shall contain a provision requiring that
the party contracting with the United States shall take affirmative action to
employ and advance in employment qualified individuals with disabilities. The
provisions of this section shall apply to any subcontract in excess of $10,000
entered into by a prime contractor in carrying out any contract for the procurement
of personal property and nonpersonal services (including construction) for the
United States. The President shall implement the provisions of this section
by promulgating regulations within ninety days after the date of enactment of
this section.

(b) If any individual
with a disability believes any contractor has failed or refused to comply with
the provisions of a contract with the United States, relating to employment
of individuals with disabilities, such individual may file a complaint with
the Department of Labor. The Department shall promptly investigate such complaint
and shall take such action thereon as the facts and circumstances warrant, consistent
with the terms of such contract and the laws and regulations applicable thereto.

(c)(1) The requirements
of this section may be waived, in whole or in part, by the President with respect
to a particular contract or subcontract, in accordance with guidelines set forth
in regulations which the President shall prescribe, when the President determines
that special circumstances in the national interest so require and states in
writing the reasons for such determination.

(2)(A) The Secretary
of Labor may waive the requirements of the affirmative action clause required
by the regulations promulgated under subsection (a) with respect to any of the
prime contractor's or subcontractor's facilities that are found to be in all
respects separate and distinct from activities of the prime contractor or subcontractor
related to the performance of the contract or subcontract, if the Secretary
of Labor also finds that such a waiver will not interfere with or impede the
effectuation of this Act.

(B) Such waivers
shall be considered only upon the request of the contractor or subcontractor.
The Secretary of Labor shall promulgate regulations that set forth the standards
used for granting such a waiver.

(d) The standards
used to determine whether this section has been violated in a complaint alleging
nonaffirmative action employment discrimination under this section shall be
the standards applied under title I of the Americans with Disabilities Act of
1990 (42 U.S.C. 12111 et seq.) and the provisions of sections 501 through 504,
and 510, of the Americans with Disabilities Act of 1990 (42 U.S.C. 12201-12204
and 12210), as such sections relate to employment.

(e) The Secretary
shall develop procedures to ensure that administrative complaints filed under
this section and under the Americans with Disabilities Act of 1990 are dealt
with in a manner that avoids duplication of effort and prevents imposition of
inconsistent or conflicting standards for the same requirements under this section
and the Americans with Disabilities Act of 1990.

Nondiscrimination Under
Federal Grants and Programs

Sec. 504.(a) No
otherwise qualified individual with a disability in the United States, as defined
in section 7(20), shall, solely by reason of her or his disability, be excluded
from the participation in, be denied the benefits of, or be subjected to discrimination
under any program or activity receiving Federal financial assistance or under
any program or activity conducted by any Executive agency or by the United States
Postal Service. The head of each such agency shall promulgate such regulations
as may be necessary to carry out the amendments to this section made by the
Rehabilitation, Comprehensive Services, and Developmental Disabilities Act of
1978. Copies of any proposed regulation shall be submitted to appropriate authorizing
committees of Congress, and such regulations may take effect no earlier than
the thirtieth day after the date on which such regulation is so submitted to
such committees.

(b) For the purposes
of this section, the term "program or activity" means all of the operations
of -

(1)(A) a department,
agency, special purpose district, or other instrumentality of a State or of
a local government; or

(B) the entity
of such a State or local government that distributes such assistance and each
such department or agency (and each other State or local government entity)
to which the assistance is extended, in the case of assistance to a State or
local government;

(2)(A) a college,
university, or other postsecondary institution, or a public system of higher
education; or

(B) a local educational
agency (as defined in section 14101 of the Elementary and Secondary Education
Act of 1965), system of vocational education, or other school system;

(3)(A) an entire
corporation, partnership, or other private organization, or an entire sole proprietorship
-

(i) if assistance
is extended to such corporation, partnership, private organization, or sole
proprietorship as a whole; or

(ii) which is principally
engaged in the business of providing education, health care, housing, social
services, or parks and recreation; or

(B) the entire plant
or other comparable, geographically separate facility to which Federal financial
assistance is extended, in the case of any corporation, partnership, private
organization, or sole proprietorship; or

(4) any other entity
which is established by two or more of the entities described in paragraph (1),
(2), or (3);

any part of which is extended
Federal financial assistance.

(c) Small providers
are not required by subsection (a) to make significant structural alterations
to their existing facilities for the purpose of assuring program accessibility,
if alternative means of providing the services are available. The terms used
in this subsection shall be construed with reference to the regulations existing
on the date of the enactment of this subsection.

(d) The standards
used to determine whether this section has been violated in a complaint alleging
employment discrimination under this section shall be the standards applied
under title I of the Americans with Disabilities Act of 1990 (42 U.S.C. 12111
et seq.) and the provisions of sections 501 through 504, and 510, of the Americans
with Disabilities Act of 1990 (42 U.S.C. 12201-12204 and 12210), as such sections
relate to employment.

Remedies and Attorneys'
Fees

Sec. 505.(a)(1)
The remedies, procedures, and rights set forth in section 717 of the Civil Rights
Act of 1964 (42 U.S.C. 2000e-16), including the application of sections 706(f)
through 706(k) (42 U.S.C. 2000e-5(f) through (k)), shall be available, with
respect to any complaint under section 501 of this Act, to any employee or applicant
for employment aggrieved by the final disposition of such complaint, or by the
failure to take final action on such complaint. In fashioning an equitable or
affirmative action remedy under such section, a court may take into account
the reasonableness of the cost of any necessary work place accommodation, and
the availability of alternatives therefor or other appropriate relief in order
to achieve an equitable and appropriate remedy.

(2) The remedies,
procedures, and rights set forth in title VI of the Civil Rights Act of 1964
shall be available to any person aggrieved by any act or failure to act by any
recipient of Federal assistance or Federal provider of such assistance under
section 504 of this Act.

(b) In any action
or proceeding to enforce or charge a violation of a provision of this title,
the court, in its discretion, may allow the prevailing party, other than the
United States, a reasonable attorney's fee as part of the costs.

Secretarial Responsibilities

Sec. 506.(a) The
Secretary may provide directly or by contract with State vocational rehabilitation
agencies or experts or consultants or groups thereof, technical assistance -

(1) to persons operating
community rehabilitation programs; and

(2) with the concurrence
of the Access Board established by section 502, to any public or nonprofit agency,
institution, or organization;

for the purpose of assisting
such persons or entities in removing architectural, transportation, or communication
barriers. Any concurrence of the Access Board under paragraph (2) shall reflect
its consideration of the cost studies carried out by States.

(b) Any such experts
or consultants, while serving pursuant to such contracts, shall be entitled
to receive compensation at rates fixed by the Secretary, but not exceeding the
daily equivalent of the rate of pay for level 4 of the Senior Executive Service
Schedule under section 5382 of title 5, United States Code, including travel
time, and while so serving away from their homes or regular places of business,
they may be allowed travel expenses, including per diem in lieu of subsistence,
as authorized by section 5703 of title 5, United States Code, for persons in
the Government service employed intermittently.

(c) The Secretary,
with the concurrence of the Access Board and the President, may provide, directly
or by contract, financial assistance to any public or nonprofit agency, institution,
or organization for the purpose of removing architectural, transportation, and
communication barriers. No assistance may be provided under this subsection
until a study demonstrating the need for such assistance has been conducted
and submitted under section 502(h)(1) of this title.

(d) In order to
carry out this section, there are authorized to be appropriated such sums as
may be necessary.

Interagency Disability
Coordinating Council

Sec. 507.(a) Establishment

There is hereby established
an Interagency Disability Coordinating Council (hereafter in this section referred
to as the "Council") composed of the Secretary of Education, the Secretary
of Health and Human Services, the Secretary of Labor, the Secretary of Housing
and Urban Development, the Secretary of Transportation, the Assistant Secretary
of the Interior for Indian Affairs, the Attorney General, the Director of the
Office of Personnel Management, the Chairperson of the Equal Employment Opportunity
Commission, the Chairperson of the Architectural and Transportation Barriers
Compliance Board, and such other officials as may be designated by the President.

(b) Duties

The Council shall -

(1) have the responsibility
for developing and implementing agreements, policies, and practices designed
to maximize effort, promote efficiency, and eliminate conflict, competition,
duplication, and inconsistencies among the operations, functions, and jurisdictions
of the various departments, agencies, and branches of the Federal Government
responsible for the implementation and enforcement of the provisions of this
title, and the regulations prescribed thereunder;

(2) be responsible
for developing and implementing agreements, policies, and practices designed
to coordinate operations, functions, and jurisdictions of the various departments
and agencies of the Federal Government responsible for promoting the full integration
into society, independence, and productivity of individuals with disabilities;
and

(3) carry out such
studies and other activities, subject to the availability of resources, with
advice from the National Council on Disability, in order to identify methods
for overcoming barriers to integration into society, independence, and productivity
of individuals with disabilities.

(c) Report

On or before July 1 of
each year, the Interagency Disability Coordinating Council shall prepare and
submit to the President and to the Congress a report of the activities of the
Council designed to promote and meet the employment needs of individuals with
disabilities, together with such recommendations for legislative and administrative
changes as the Council concludes are desirable to further promote this section,
along with any comments submitted by the National Council on Disability as to
the effectiveness of such activities and recommendations in meeting the needs
of individuals with disabilities. Nothing in this section shall impair any responsibilities
assigned by any Executive order to any Federal department, agency, or instrumentality
to act as a lead Federal agency with respect to any provisions of this title.

Electronic and Information
Technology Accessibility Guidelines

Sec. 508. Electronic and
Information Technology

(a)Requirements
for Federal Departments and Agencies

(1)Accessibility

(A)Development,
procurement, maintenance, or use of electronic and information technology

When developing, procuring,
maintaining, or using electronic and information technology, each Federal department
or agency, including the United States Postal Service, shall ensure, unless
an undue burden would be imposed on the department or agency, that the electronic
and information technology allows, regardless of the type of medium of the technology-

(i) individuals
with disabilities who are Federal employees to have access to and use of information
and data that is comparable to the access to and use of the information and
data by Federal employees who are not individuals with disabilities; and

(ii) individuals
with disabilities who are members of the public seeking information or services
from a Federal department or agency to have access to and use of information
and data that is comparable to the access to and use of the information and
data by such members of the public who are not individuals with disabilities.

(B)Alternative
means efforts

When development, procurement,
maintenance, or use of electronic and information technology that meets the
standards published by the Access Board under paragraph (2) would impose an
undue burden, the Federal department or agency shall provide individuals with
disabilities covered by paragraph (1) with the information and data involved
by an alternative means of access that allows the individual to use the information
and data.

(2)Electronic
and information technology standards

(A)In general

Not later than 18 months
after the date of enactment of the Rehabilitation Act Amendments of 1998, the
Architectural and Transportation Barriers Compliance Board (referred to in this
section as the "Access Board"), after consultation with the Secretary
of Education, the Administrator of General Services, the Secretary of Commerce,
the Chairman of the Federal Communications Commission, the Secretary of Defense,
and the head of any other Federal department or agency that the Access Board
determines to be appropriate, including consultation on relevant research findings,
and after consultation with the electronic and information technology industry
and appropriate public or nonprofit agencies or organizations, including organizations
representing individuals with disabilities, shall issue and publish standards
setting forth-

(i) for purposes
of this section, a definition of electronic and information technology that
is consistent with the definition of information technology specified in section
5002(3) of the Clinger-Cohen Act of 1996 (40 U.S.C. 1401(3)); and

(ii) the technical
and functional performance criteria necessary to implement the requirements
set forth in paragraph (1).

Not later than 6 months after the Access Board publishes the standards required
under paragraph (2), the Federal Acquisition Regulatory Council shall revise
the Federal Acquisition Regulation and each Federal department or agency shall
revise the Federal procurement policies and directives under the control of
the department or agency to incorporate those standards. Not later than 6 months
after the Access Board revises any standards required under paragraph (2), the
Council shall revise the Federal Acquisition Regulation and each appropriate
Federal department or agency shall revise the procurement policies and directives,
as necessary, to incorporate the revisions.

(4)Acquisition
planning

In the event that a Federal
department or agency determines that compliance with the standards issued by
the Access Board under paragraph (2) relating to procurement imposes an undue
burden, the documentation by the department or agency supporting the procurement
shall explain why compliance creates an undue burden.

(5)Exemption
for national security systems

This section shall not
apply to national security systems, as that term is defined in section 5142
of the Clinger-Cohen Act of 1996 (40 U.S.C. 1452).

(6)Construction

(A)Equipment

In a case in which the
Federal Government provides access to the public to information or data through
electronic and information technology, nothing in this section shall be construed
to require a Federal department or agency-

(i) to make equipment
owned by the Federal Government available for access and use by individuals
with disabilities covered by paragraph (1) at a location other than that where
the electronic and information technology is provided to the public; or

(ii) to purchase
equipment for access and use by individuals with disabilities covered by paragraph
(1) at a location other than that where the electronic and information technology
is provided to the public.

(B)Software
and peripheral devices

Except as required to comply
with standards issued by the Access Board under paragraph (2), nothing in paragraph
(1) requires the installation of specific accessibility-related software or
the attachment of a specific accessibility-related peripheral device at a workstation
of a Federal employee who is not an individual with a disability.

(b)Technical
Assistance

The Administrator of General Services and the Access Board shall provide technical
assistance to individuals and Federal departments and agencies concerning the
requirements of this section.

(c)Agency Evaluations

Not later than 6 months
after the date of enactment of the Rehabilitation Act Amendments of 1998, the
head of each Federal department or agency shall evaluate the extent to which
the electronic and information technology of the department or agency is accessible
to and usable by individuals with disabilities described in subsection (a)(1),
compared to the access to and use of the technology by individuals described
in such subsection who are not individuals with disabilities, and submit a report
containing the evaluation to the Attorney General.

(d)Reports

(1)Interim report

Not later than 18 months
after the date of enactment of the Rehabilitation Act Amendments of 1998, the
Attorney General shall prepare and submit to the President a report containing
information on and recommendations regarding the extent to which the electronic
and information technology of the Federal Government is accessible to and usable
by individuals with disabilities described in subsection (a)(1).

(2)Biennial
reports

Not later than 3 years
after the date of enactment of the Rehabilitation Act Amendments of 1998, and
every 2 years thereafter, the Attorney General shall prepare and submit to the
President and Congress a report containing information on and recommendations
regarding the state of Federal department and agency compliance with the requirements
of this section, including actions regarding individual complaints under subsection
(f).

(e)Cooperation

Each head of a Federal
department or agency (including the Access Board, the Equal Employment Opportunity
Commission, and the General Services Administration) shall provide to the Attorney
General such information as the Attorney General determines is necessary to
conduct the evaluations under subsection (c) and prepare the reports under subsection
(d).

(f)Enforcement

(1)General

(A)Complaints

Effective 2 years after
the date of enactment of the Rehabilitation Act Amendments of 1998, any individual
with a disability may file a complaint alleging that a Federal department or
agency fails to comply with subsection (a)(1) in providing electronic and information
technology.

(B)Application

This subsection shall apply
only to electronic and information technology that is procured by a Federal
department or agency not less than 2 years after the date of enactment of the
Rehabilitation Act Amendments of 1998.

(2)Administrative
complaints

Complaints filed under
paragraph (1) shall be filed with the Federal department or agency alleged to
be in noncompliance. The Federal department or agency receiving the complaint
shall apply the complaint procedures established to implement section 504 for
resolving allegations of discrimination in a federally conducted program or
activity.

(3)Civil actions

The remedies, procedures,
and rights set forth in sections 505(a)(2) and 505(b) shall be the remedies,
procedures, and rights available to any individual with a disability filing
a complaint under paragraph (1).

(g)Application
to Other Federal Laws

This section shall not
be construed to limit any right, remedy, or procedure otherwise available under
any provision of Federal law (including sections 501 through 505) that provides
greater or equal protection for the rights of individuals with disabilities
than this section.

Sec. 509. Protection and
Advocacy of Individual Rights

(a)Purpose and
Construction

(1)Purpose

The purpose of this section
is to support a system in each State to protect the legal and human rights of
individuals with disabilities who-

(A) need services
that are beyond the scope of services authorized to be provided by the client
assistance program under section 112; and

(B)(i) are ineligible
for protection and advocacy programs under part C of the Developmental Disabilities
Assistance and Bill of Rights Act (42 U.S.C. 6041 et seq.) because the individuals
do not have a developmental disability, as defined in section 102 of such Act
(42 U.S.C. 6002); and

(ii) are ineligible
for services under the Protection and Advocacy for Mentally Ill Individuals
Act of 1986 (42 U.S.C. 10801 et seq.) because the individuals are not individuals
with mental illness, as defined in section 102 of such Act (42 U.S.C. 10802).

(2)Construction

This section shall not
be construed to require the provision of protection and advocacy services that
can be provided under the Technology-Related Assistance for Individuals With
Disabilities Act of 1988 (42 U.S.C. 2201 et seq.).

(b)Appropriations
Less Than $5,500,000

For any fiscal year in
which the amount appropriated to carry out this section is less than $5,500,000,
the Commissioner may make grants from such amount to eligible systems within
States to plan for, develop outreach strategies for, and carry out protection
and advocacy programs authorized under this section for individuals with disabilities
who meet the requirements of subparagraphs (A) and (B) of subsection (a)(1).

(c) Appropriations
of $5,500,000or More

(1)Reservations

(A)Technical
assistance

For any fiscal year in
which the amount appropriated to carry out this section equals or exceeds $5,500,000,
the Commissioner shall set aside not less than 1.8 percent and not more than
2.2 percent of the amount to provide training and technical assistance to the
systems established under this section.

(B)Grant for
the eligible system serving the american indian consortium

For any fiscal year in
which the amount appropriated to carry out this section equals or exceeds $10,500,000,
the Commissioner shall reserve a portion, and use the portion to make a grant
for the eligible system serving the American Indian consortium. The Commission
shall make the grant in an amount of not less than $50,000 for the fiscal year.

(2)Allotments

For any such fiscal year,
after the reservations required by paragraph (1) have been made, the Commissioner
shall make allotments from the remainder of such amount in accordance with paragraph
(3) to eligible systems within States to enable such systems to carry out protection
and advocacy programs authorized under this section for individuals referred
to in subsection (b).

(3)Systems within
states

(A)Population
basis

Except as provided in subparagraph
(B), from such remainder for each such fiscal year, the Commissioner shall make
an allotment to the eligible system within a State of an amount bearing the
same ratio to such remainder as the population of the State bears to the population
of all States.

(B)Minimums

Subject to the availability
of appropriations to carry out this section, and except as provided in paragraph
(4), the allotment to any system under subparagraph (A) shall be not less than
$100,000 or one-third of one percent of the remainder for the fiscal year for
which the allotment is made, whichever is greater, and the allotment to any
system under this section for any fiscal year that is less than $100,000 or
one-third of one percent of such remainder shall be increased to the greater
of the two amounts.

(4)Systems within
other jurisdictions

(A)In general

For the purposes of paragraph
(3)(B), Guam, American Samoa, the United States Virgin Islands, and the Commonwealth
of the Northern Mariana Islands shall not be considered to be States.

(B)Allotment

The eligible system within
a jurisdiction described in subparagraph (A) shall be allotted under paragraph
(3)(A) not less than $50,000 for the fiscal year for which the allotment is
made.

(5)Adjustment
for inflation

For any fiscal year, beginning in fiscal year 1999, in which the total amount
appropriated to carry out this section exceeds the total amount appropriated
to carry out this section for the preceding fiscal year, the Commissioner shall
increase each of the minimum grants or allotments under paragraphs (1)(B), (3)(B),
and (4)(B) by a percentage that shall not exceed the percentage increase in
the total amount appropriated to carry out this section between the preceding
fiscal year and the fiscal year involved.

(d)Proportional
Reduction

To provide minimum allotments
to systems within States (as increased under subsection (c)(5)) under subsection
(c)(3)(B), or to provide minimum allotments to systems within States (as increased
under subsection (c)(5)) under subsection (c)(4)(B), the Commissioner shall
proportionately reduce the allotments of the remaining systems within States
under subsection (c)(3), with such adjustments as may be necessary to prevent
the allotment of any such remaining system within a State from being reduced
to less than the minimum allotment for a system within a State (as increased
under subsection (c)(5)) under subsection (c)(3)(B), or the minimum allotment
for a State (as increased under subsection (c)(5)) under subsection (c)(4)(B),
as appropriate.

(e)Reallotment

Whenever the Commissioner
determines that any amount of an allotment to a system within a State for any
fiscal year described in subsection (c)(1) will not be expended by such system
in carrying out the provisions of this section, the Commissioner shall make
such amount available for carrying out the provisions of this section to one
or more of the systems that the Commissioner determines will be able to use
additional amounts during such year for carrying out such provisions. Any amount
made available to a system for any fiscal year pursuant to the preceding sentence
shall, for the purposes of this section, be regarded as an increase in the allotment
of the system (as determined under the preceding provisions of this section)
for such year.

(f)Application

In order to receive assistance
under this section, an eligible system shall submit an application to the Commissioner,
at such time, in such form and manner, and containing such information and assurances
as the Commissioner determines necessary to meet the requirements of this section,
including assurances that the eligible system will-

(1) have in effect
a system to protect and advocate the rights of individuals with disabilities;

(2) have the same
general authorities, including access to records and program income, as are
set forth in part C of the Developmental Disabilities Assistance and Bill of
Rights Act (42 U.S.C. 6041 et seq.);

(3) have the authority
to pursue legal, administrative, and other appropriate remedies or approaches
to ensure the protection of, and advocacy for, the rights of such individuals
within the State or the American Indian consortium who are individuals described
in subsection (a)(1);

(4) provide information
on and make referrals to programs and services addressing the needs of individuals
with disabilities in the State or the American Indian consortium;

(5) develop a statement
of objectives and priorities on an annual basis, and provide to the public,
including individuals with disabilities and, as appropriate, the individuals'
representatives, an opportunity to comment on the objectives and priorities
established by, and activities of, the system including-

(A) the objectives
and priorities for the activities of the system for each year and the rationale
for the establishment of such objectives and priorities; and

(B) the coordination
of programs provided through the system under this section with the advocacy
programs of the client assistance program under section 112, the State long-term
care ombudsman program established under the Older Americans Act of 1965 (42
U.S.C. 3001 et seq.), the Developmental Disabilities Assistance and Bill of
Rights Act (42 U.S.C. 6000 et seq.), and the Protection and Advocacy for Mentally
Ill Individuals Act of 1986 (42 U.S.C. 10801 et seq.);

(6) establish a
grievance procedure for clients or prospective clients of the system to ensure
that individuals with disabilities are afforded equal opportunity to access
the services of the system; and

(7) provide assurances
to the Commissioner that funds made available under this section will be used
to supplement and not supplant the non-Federal funds that would otherwise be
made available for the purpose for which Federal funds are provided.

(g)Carryover
and Direct Payment

(1)Direct payment

Notwithstanding any other
provision of law, the Commissioner shall pay directly to any system that complies
with the provisions of this section, the amount of the allotment of the State
or the grant for the eligible system that serves the American Indian consortium
involved under this section, unless the State or American Indian consortium
provides otherwise.

(2)Carryover

Any amount paid to an eligible
system that serves a State or American Indian consortium for a fiscal year that
remains unobligated at the end of such year shall remain available to such system
that serves the State or American Indian consortium for obligation during the
next fiscal year for the purposes for which such amount was paid.

(h)Limitation
on Disclosure Requirements

For purposes of any audit,
report, or evaluation of the performance of the program established under this
section, the Commissioner shall not require such a program to disclose the identity
of, or any other personally identifiable information related to, any individual
requesting assistance under such program.

(i)Administrative
Cost

In any State in which an
eligible system is located within a State agency, a State may use a portion
of any allotment under subsection (c) for the cost of the administration of
the system required by this section. Such portion may not exceed 5 percent of
the allotment.

(j)Delegation

The Commissioner may delegate
the administration of this program to the Commissioner of the Administration
on Developmental Disabilities within the Department of Health and Human Services.

(k)Report

The Commissioner shall
annually prepare and submit to the Committee on Education and the Workforce
of the House of Representatives and the Committee on Labor and Human Resources
of the Senate a report describing the types of services and activities being
undertaken by programs funded under this section, the total number of individuals
served under this section, the types of disabilities represented by such individuals,
and the types of issues being addressed on behalf of such individuals.

(l)Authorization
of Appropriations

There are authorized to
be appropriated to carry out this section such sums as may be necessary for
each of the fiscal years 1999 through 2003.

(m)Definitions

As used in this section:

(1)Eligible
system

The term "eligible
system" means a protection and advocacy system that is established under
part C of the Developmental Disabilities Assistance and Bill of Rights Act (42
U.S.C. 6041 et seq.) and that meets the requirements of subsection (f).

(2)American
indian consortium

The term "American
Indian consortium" means a consortium established as described in section
142 of the Developmental Disabilities Assistance and Bill of Rights Act.

TITLE VI-EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS WITH DISABILITIES

Sec. 601. Short Title

This title may be cited
as the "Employment Opportunities for Individuals With Disabilities Act".

Part A-Projects With Industry

Sec. 611. (a)(1)
The purpose of this part is to create and expand job and career opportunities
for individuals with disabilities in the competitive labor market by engaging
the talent and leadership of private industry as partners in the rehabilitation
process, to identify competitive job and career opportunities and the skills
needed to perform such jobs, to create practical job and career readiness and
training programs, and to provide job placements and career advancement.

(2) The Commissioner,
in consultation with the Secretary of Labor and with designated State units,
may award grants to individual employers, community rehabilitation program providers,
labor unions, trade associations, Indian tribes, tribal organizations, designated
State units, and other entities to establish jointly financed Projects With
Industry to create and expand job and career opportunities for individuals with
disabilities, which projects shall-

(A) provide for
the establishment of business advisory councils, that shall-

(i) be comprised
of-

(I) representatives
of private industry, business concerns, and organized labor;

(II) individuals
with disabilities and representatives of individuals with disabilities; and

(III) a representative
of the appropriate designated State unit;

(ii) identify job
and career availability within the community, consistent with the current and
projected local employment opportunities identified by the local workforce investment
board for the community under section 118(b)(1)(B) of the Workforce Investment
Act of 1998;

(iii) identify the
skills necessary to perform the jobs and careers identified; and

(iv) prescribe training
programs designed to develop appropriate job and career skills, or job placement
programs designed to identify and develop job placement and career advancement
opportunities, for individuals with disabilities in fields related to the job
and career availability identified under clause (ii);

(i) training in
realistic work settings in order to prepare individuals with disabilities for
employment and career advancement in the competitive market; and

(ii) to the extent
practicable, the modification of any facilities or equipment of the employer
involved that are used primarily by individuals with disabilities, except that
a project shall not be required to provide for such modification if the modification
is required as a reasonable accommodation under the Americans with Disabilities
Act of 1990 (42 U.S.C. 12101 et seq.); and

(D) provide individuals
with disabilities with such support services as may be required in order to
maintain the employment and career advancement for which the individuals have
received training under this part.

(3)(A) An individual
shall be eligible for services described in paragraph (2) if the individual
is determined to be an individual described in section 102(a)(1), and if the
determination is made in a manner consistent with section 102(a).

(B) Such a determination
may be made by the recipient of a grant under this part, to the extent the determination
is appropriate and available and consistent with the requirements of section
102(a).

(4) The Commissioner
shall enter into an agreement with the grant recipient regarding the establishment
of the project. Any agreement shall be jointly developed by the Commissioner,
the grant recipient, and, to the extent practicable, the appropriate designated
State unit and the individuals with disabilities (or the individuals' representatives)
involved. Such agreements shall specify the terms of training and employment
under the project, provide for the payment by the Commissioner of part of the
costs of the project (in accordance with subsection (c)), and contain the items
required under subsection (b) and such other provisions as the parties to the
agreement consider to be appropriate.

(5) Any agreement
shall include a description of a plan to annually conduct a review and evaluation
of the operation of the project in accordance with standards developed by the
Commissioner under subsection (d), and, in conducting the review and evaluation,
to collect data and information of the type described in subparagraphs (A) through
(C) of section 101(a)(10), as determined to be appropriate by the Commissioner.

(6) The Commissioner
may include, as part of agreements with grant recipients, authority for such
grant recipients to provide technical assistance to-

(A) assist employers
in hiring individuals with disabilities; or

(B) improve or develop
relationships between-

(i) grant recipients
or prospective grant recipients; and

(ii) employers or
organized labor; or

(C) assist employers
in understanding and meeting the requirements of the Americans with Disabilities
Act of 1990 (42 U.S.C. 12101 et seq.) as the Act relates to employment of individuals
with disabilities.

(b) No payment
shall be made by the Commissioner under any agreement with a grant recipient
entered into under subsection (a) unless such agreement-

(1) provides an
assurance that individuals with disabilities placed under such agreement shall
receive at least the applicable minimum wage;

(2) provides an
assurance that any individual with a disability placed under this part shall
be afforded terms and benefits of employment equal to terms and benefits that
are afforded to the similarly situated nondisabled co-workers of the individual,
and that such individuals with disabilities shall not be segregated from their
co-workers; and

(3) provides an
assurance that an annual evaluation report containing information specified
under subsection (a)(5) shall be submitted as determined to be appropriate by
the Commissioner.

(c) Payments under
this section with respect to any project may not exceed 80 per centum of the
costs of the project.

(d)(1) The Commissioner
shall develop standards for the evaluation described in subsection (a)(5) and
shall review and revise the evaluation standards as necessary, subject to paragraph
(2).

(2) In revising
the standards for evaluation to be used by the grant recipients, the Commissioner
shall obtain and consider recommendations for such standards from State vocational
rehabilitation agencies, current and former grant recipients, professional organizations
representing business and industry, organizations representing individuals with
disabilities, individuals served by grant recipients, organizations representing
community rehabilitation program providers, and labor organizations.

(e)(1)(A) A grant may be awarded under this section for a period of
up to 5 years and such grant may be renewed.

(B) Grants under
this section shall be awarded on a competitive basis. To be eligible to receive
such a grant, a prospective grant recipient shall submit an application to the
Commissioner at such time, in such manner, and containing such information as
the Commissioner may require.

(2) The Commissioner
shall, to the extent practicable, ensure an equitable distribution of payments
made under this section among the States. To the extent funds are available,
the Commissioner shall award grants under this section to new projects that
will serve individuals with disabilities in States, portions of States, Indian
tribes, or tribal organizations, that are currently unserved or underserved
by projects.

(f)(1) The Commissioner
shall, as necessary, develop and publish in the Federal Register, in final form,
indicators of what constitutes minimum compliance consistent with the evaluation
standards under subsection (d)(1).

(2) Each grant recipient
shall report to the Commissioner at the end of each project year the extent
to which the grant recipient is in compliance with the evaluation standards.

(B) The Commissioner
shall use the indicators in determining compliance with the evaluation standards.

(C) The Commissioner
shall ensure that at least one member of a team conducting such a review shall
be an individual who-

(i) is not an employee
of the Federal Government; and

(ii) has experience
or expertise in conducting projects.

(D) The Commissioner
shall ensure that-

(i) a representative
of the appropriate designated State unit shall participate in the review; and

(ii) no person shall
participate in the review of a grant recipient if-

(I) the grant recipient
provides any direct financial benefit to the reviewer; or

(II) participation
in the review would give the appearance of a conflict of interest.

(4) In making a
determination concerning any subsequent grant under this section, the Commissioner
shall consider the past performance of the applicant, if applicable. The Commissioner
shall use compliance indicators developed under this subsection that are consistent
with program evaluation standards developed under subsection (d) to assess minimum
project performance for purposes of making continuation awards in the third,
fourth, and fifth years.

(5) Each fiscal
year the Commissioner shall include in the annual report to Congress required
by section 13 an analysis of the extent to which grant recipients have complied
with the evaluation standards. The Commissioner may identify individual grant
recipients in the analysis. In addition, the Commissioner shall report the results
of onsite compliance reviews, identifying individual grant recipients.

(g) The Commissioner
may provide, directly or by way of grant, contract, or cooperative agreement,
technical assistance to-

(1) entities conducting
projects for the purpose of assisting such entities in-

(A) the improvement
of or the development of relationships with private industry or labor; or

(B) the improvement
of relationships with State vocational rehabilitation agencies; and

(2) entities planning
the development of new projects.

(h) As used in
this section:

(1) The term "agreement"
means an agreement described in subsection (a)(4).

(2) The term "project"
means a Project With Industry established under subsection (a)(2).

(3) The term "grant
recipient" means a recipient of a grant under subsection (a)(2).

Sec. 612.Authorization of Appropriations

There are authorized to
be appropriated to carry out the provisions of this part, such sums as may be
necessary for each of fiscal years 1999 through 2003.

Part B-Supported Employment Services

for Individuals With the Most Significant Disabilities

Sec. 621. Purpose

It is the purpose of this
part to authorize allotments, in addition to grants for vocational rehabilitation
services under title I, to assist States in developing collaborative programs
with appropriate entities to provide supported employment services for individuals
with the most significant disabilities to enable such individuals to achieve
the employment outcome of supported employment.

Sec. 622. Allotments

(a)In General

(1)States

The Secretary shall allot
the sums appropriated for each fiscal year to carry out this part among the
States on the basis of relative population of each State, except that-

(A) no State shall
receive less than $250,000, or one-third of one percent of the sums appropriated
for the fiscal year for which the allotment is made, whichever is greater; and

(B) if the sums
appropriated to carry out this part for the fiscal year exceed by $1,000,000
or more the sums appropriated to carry out this part in fiscal year 1992, no
State shall receive less than $300,000, or one-third of one percent of the sums
appropriated for the fiscal year for which the allotment is made, whichever
is greater.

(2)Certain territories

(A)In general

For the purposes of this
subsection, Guam, American Samoa, the United States Virgin Islands, and the
Commonwealth of the Northern Mariana Islands shall not be considered to be States.

(B)Allotment

Each jurisdiction described
in subparagraph (A) shall be allotted not less than one-eighth of one percent
of the amounts appropriated for the fiscal year for which the allotment is made.`

(b) Reallotment

Whenever the Commissioner
determines that any amount of an allotment to a State for any fiscal year will
not be expended by such State for carrying out the provisions of this part,
the Commissioner shall make such amount available for carrying out the provisions
of this part to one or more of the States that the Commissioner determines will
be able to use additional amounts during such year for carrying out such provisions.
Any amount made available to a State for any fiscal year pursuant to the preceding
sentence shall, for the purposes of this section, be regarded as an increase
in the allotment of the State (as determined under the preceding provisions
of this section) for such year.

Sec. 623. Availability of Services

Funds provided under this
part may be used to provide supported employment services to individuals who
are eligible under this part. Funds provided under this part, or title I, may
not be used to provide extended services to individuals who are eligible under
this part or title I.

Sec. 624. Eligibility

An individual shall be
eligible under this part to receive supported employment services authorized
under this Act if-

(1) the individual
is eligible for vocational rehabilitation services;

(2) the individual
is determined to be an individual with a most significant disability; and

(3) a comprehensive
assessment of rehabilitation needs of the individual described in section 7(2)(B),
including an evaluation of rehabilitation, career, and job needs, identifies
supported employment as the appropriate employment outcome for the individual.

Sec. 625. State Plan

(a)State Plan
Supplements

To be eligible for an allotment
under this part, a State shall submit to the Commissioner, as part of the State
plan under section 101, a State plan supplement for providing supported employment
services authorized under this Act to individuals who are eligible under this
Act to receive the services. Each State shall make such annual revisions in
the plan supplement as may be necessary.

(b)Contents

Each such plan supplement
shall-

(1) designate each
designated State agency as the agency to administer the program assisted under
this part;

(2) summarize the
results of the comprehensive, statewide assessment conducted under section 101(a)(15)(A)(i),
with respect to the rehabilitation needs of individuals with significant disabilities
and the need for supported employment services, including needs related to coordination;

(3) describe the
quality, scope, and extent of supported employment services authorized under
this Act to be provided to individuals who are eligible under this Act to receive
the services and specify the goals and plans of the State with respect to the
distribution of funds received under section 622;

(4) demonstrate
evidence of the efforts of the designated State agency to identify and make
arrangements (including entering into cooperative agreements) with other State
agencies and other appropriate entities to assist in the provision of supported
employment services;

(5) demonstrate
evidence of the efforts of the designated State agency to identify and make
arrangements (including entering into cooperative agreements) with other public
or nonprofit agencies or organizations within the State, employers, natural
supports, and other entities with respect to the provision of extended services;

(6) provide assurances
that-

(A) funds made available
under this part will only be used to provide supported employment services authorized
under this Act to individuals who are eligible under this part to receive the
services;

(B) the comprehensive
assessments of individuals with significant disabilities conducted under section
102(b)(1) and funded under title I will include consideration of supported employment
as an appropriate employment outcome;

(C) an individualized
plan for employment, as required by section 102, will be developed and updated
using funds under title I in order to-

(i) specify the
supported employment services to be provided;

(ii) specify the
expected extended services needed; and

(iii) identify the
source of extended services, which may include natural supports, or to the extent
that it is not possible to identify the source of extended services at the time
the individualized plan for employment is developed, a statement describing
the basis for concluding that there is a reasonable expectation that such sources
will become available;

(D) the State will
use funds provided under this part only to supplement, and not supplant, the
funds provided under title I, in providing supported employment services specified
in the individualized plan for employment;

(E) services provided
under an individualized plan for employment will be coordinated with services
provided under other individualized plans established under other Federal or
State programs;

(F) to the extent
jobs skills training is provided, the training will be provided on site; and

(G) supported employment
services will include placement in an integrated setting for the maximum number
of hours possible based on the unique strengths, resources, priorities, concerns,
abilities, capabilities, interests, and informed choice of individuals with
the most significant disabilities;

(7) provide assurances
that the State agencies designated under paragraph (1) will expend not more
than 5 percent of the allotment of the State under this part for administrative
costs of carrying out this part; and

(8) contain such
other information and be submitted in such manner as the Commissioner may require.

Sec. 626. Restriction

Each State agency designated
under section 625(b)(1) shall collect the information required by section 101(a)(10)
separately for eligible individuals receiving supported employment services
under this part and for eligible individuals receiving supported employment
services under title I.

Sec. 627. Savings Provision

(a)Supported Employment Services

Nothing in this Act shall
be construed to prohibit a State from providing supported employment services
in accordance with the State plan submitted under section 101 by using funds
made available through a State allotment under section 110.

(b)Postemployment Services

Nothing in this part shall
be construed to prohibit a State from providing discrete postemployment services
in accordance with the State plan submitted under section 101 by using funds
made available through a State allotment under section 110 to an individual
who is eligible under this part.

Sec. 628. Authorization of Appropriations

There are authorized to
be appropriated to carry out this part such sums as may be necessary for each
of fiscal years 1999 through 2003.

TITLE VII-INDEPENDENT LIVING SERVICES AND CENTERS FOR INDEPENDENT
LIVING

Chapter 1-Individuals with Significant Disabilities

Part A-General Provisions

Sec. 701. Purpose

The purpose of this chapter
is to promote a philosophy of independent living, including a philosophy of
consumer control, peer support, self-help, self-determination, equal access,
and individual and system advocacy, in order to maximize the leadership, empowerment,
independence, and productivity of individuals with disabilities, and the integration
and full inclusion of individuals with disabilities into the mainstream of American
society, by-

(1) providing financial
assistance to States for providing, expanding, and improving the provision of
independent living services;

(2) providing financial
assistance to develop and support statewide networks of centers for independent
living; and

(3) providing financial
assistance to States for improving working relationships among State independent
living rehabilitation service programs, centers for independent living, Statewide
Independent Living Councils established under section 705, State vocational
rehabilitation programs receiving assistance under title I, State programs of
supported employment services receiving assistance under part B of title VI,
client assistance programs receiving assistance under section 112, programs
funded under other titles of this Act, programs funded under other Federal law,
and programs funded through non-Federal sources.

(A) is designed
and operated within a local community by individuals with disabilities; and

(B) provides an array of independent living services.

(2)Consumer
control

The term "consumer
control" means, with respect to a center for independent living, that the
center vests power and authority in individuals with disabilities.

Sec. 703. Eligibility for Receipt of Services

Services may be provided
under this chapter to any individual with a significant disability, as defined
in section 7(21)(B).

Sec. 704. State Plan

(a)In General

(1)Requirement

To be eligible to receive
financial assistance under this chapter, a State shall submit to the Commissioner,
and obtain approval of, a State plan containing such provisions as the Commissioner
may require, including, at a minimum, the provisions required in this section.

(2)Joint development

The plan under paragraph
(1) shall be jointly developed and signed by-

(A) the director
of the designated State unit; and

(B) the chairperson
of the Statewide Independent Living Council, acting on behalf of and at the
direction of the Council.

(3)Periodic
review and revision

The plan shall provide
for the review and revision of the plan, not less than once every 3 years, to
ensure the existence of appropriate planning, financial support and coordination,
and other assistance to appropriately address, on a statewide and comprehensive
basis, needs in the State for-

(A) the provision
of State independent living services;

(B) the development
and support of a statewide network of centers for independent living; and

(C) working relationships
between-

(i) programs providing
independent living services and independent living centers; and

(ii) the vocational
rehabilitation program established under title I, and other programs providing
services for individuals with disabilities.

(4)Date of submission

The State shall submit
the plan to the Commissioner 90 days before the completion date of the preceding
plan. If a State fails to submit such a plan that complies with the requirements
of this section, the Commissioner may withhold financial assistance under this
chapter until such time as the State submits such a plan.

(b)Statewide
Independent Living Council

The plan shall provide
for the establishment of a Statewide Independent Living Council in accordance
with section 705.

(c)Designation
of State Unit

The plan shall designate
the designated State unit of such State as the agency that, on behalf of the
State, shall-

(1) receive, account
for, and disburse funds received by the State under this chapter based on the
plan;

(2) provide administrative
support services for a program under part B, and a program under part C in a
case in which the program is administered by the State under section 723;

(3) keep such records
and afford such access to such records as the Commissioner finds to be necessary
with respect to the programs; and

(4) submit such
additional information or provide such assurances as the Commissioner may require
with respect to the programs.

(d)Objectives

The plan shall-

(1) specify the
objectives to be achieved under the plan and establish timelines for the achievement
of the objectives; and

(2) explain how such objectives are consistent with and further the
purpose of this chapter.

(e)Independent
Living Services

The plan shall provide
that the State will provide independent living services under this chapter to
individuals with significant disabilities, and will provide the services to
such an individual in accordance with an independent living plan mutually agreed
upon by an appropriate staff member of the service provider and the individual,
unless the individual signs a waiver stating that such a plan is unnecessary.

(f)Scope and
Arrangements

The plan shall describe
the extent and scope of independent living services to be provided under this
chapter to meet such objectives. If the State makes arrangements, by grant or
contract, for providing such services, such arrangements shall be described
in the plan.

(g)Network

The plan shall set forth
a design for the establishment of a statewide network of centers for independent
living that comply with the standards and assurances set forth in section 725.

(h)Centers

In States in which State
funding for centers for independent living equals or exceeds the amount of funds
allotted to the State under part C, as provided in section 723, the plan shall
include policies, practices, and procedures governing the awarding of grants
to centers for independent living and oversight of such centers consistent with
section 723.

(i)Cooperation,
Coordination, and Working Relationships Among Various Entities

The plan shall set forth
the steps that will be taken to maximize the cooperation, coordination, and
working relationships among-

(1) the independent
living rehabilitation service program, the Statewide Independent Living Council,
and centers for independent living; and

(2) the designated
State unit, other State agencies represented on such Council, other councils
that address the needs of specific disability populations and issues, and other
public and private entities determined to be appropriate by the Council.

(j)Coordination
of Services

The plan shall describe
how services funded under this chapter will be coordinated with, and complement,
other services, in order to avoid unnecessary duplication with other Federal,
State, and local programs.

(k)Coordination
Between Federal and State Sources

The plan shall describe
efforts to coordinate Federal and State funding for centers for independent
living and independent living services.

(l)Outreach

With respect to services
and centers funded under this chapter, the plan shall set forth steps to be
taken regarding outreach to populations that are unserved or underserved by
programs under this title, including minority groups and urban and rural populations.

(m)Requirements

The plan shall provide
satisfactory assurances that all recipients of financial assistance under this
chapter will-

(1) notify all individuals
seeking or receiving services under this chapter about the availability of the
client assistance program under section 112, the purposes of the services provided
under such program, and how to contact such program;

(2) take affirmative
action to employ and advance in employment qualified individuals with disabilities
on the same terms and conditions required with respect to the employment of
such individuals under the provisions of section 503;

(3) adopt such fiscal
control and fund accounting procedures as may be necessary to ensure the proper
disbursement of and accounting for funds paid to the State under this chapter;

(4)(A) maintain
records that fully disclose-

(i) the amount and
disposition by such recipient of the proceeds of such financial assistance;

(ii) the total cost
of the project or undertaking in connection with which such financial assistance
is given or used; and

(iii) the amount
of that portion of the cost of the project or undertaking supplied by other
sources;

(B) maintain such
other records as the Commissioner determines to be appropriate to facilitate
an effective audit;

(C) afford such
access to records maintained under subparagraphs (A) and (B) as the Commissioner
determines to be appropriate; and

(D) submit such
reports with respect to such records as the Commissioner determines to be appropriate;

(5) provide access
to the Commissioner and the Comptroller General or any of their duly authorized
representatives, for the purpose of conducting audits and examinations, of any
books, documents, papers, and records of the recipients that are pertinent to
the financial assistance received under this chapter; and

(6) provide for
public hearings regarding the contents of the plan during both the formulation
and review of the plan.

(n)Evaluation

The plan shall establish
a method for the periodic evaluation of the effectiveness of the plan in meeting
the objectives established in subsection (d), including evaluation of satisfaction
by individuals with disabilities.

Sec. 705. Statewide Independent
Living Council

(a)Establishment

To be eligible to receive
financial assistance under this chapter, each State shall establish a Statewide
Independent Living Council (referred to in this section as the "Council").
The Council shall not be established as an entity within a State agency.

(b)Composition
and Appointment

(1)Appointment

Members of the Council
shall be appointed by the Governor. The Governor shall select members after
soliciting recommendations from representatives of organizations representing
a broad range of individuals with disabilities and organizations interested
in individuals with disabilities.

(2)Composition

The Council shall include-

(A) at least one
director of a center for independent living chosen by the directors of centers
for independent living within the State;

(B) as ex officio,
nonvoting members-

(i) a representative
from the designated State unit; and

(ii) representatives
from other State agencies that provide services for individuals with disabilities;
and

(C) in a State in
which 1 or more projects are carried out under section 121, at least 1 representative
of the directors of the projects.

(3)Additional
members

The Council may include-

(A) other representatives
from centers for independent living;

(B) parents and
guardians of individuals with disabilities;

(C) advocates of
and for individuals with disabilities;

(D) representatives
from private businesses;

(E) representatives
from organizations that provide services for individuals with disabilities;
and

(F) other appropriate
individuals.

(4)Qualifications

(A)In general

The Council shall be composed
of members-

(i) who provide
statewide representation;

(ii) who represent
a broad range of individuals with disabilities from diverse backgrounds;

(iii) who are knowledgeable
about centers for independent living and independent living services; and

(iv) a majority
of whom are persons who are-

(I) individuals
with disabilities described in section 7(20)(B); and

(II) not employed
by any State agency or center for independent living.

(B)Voting members

A majority of the voting
members of the Council shall be-

(i) individuals
with disabilities described in section 7(20)(B); and

(ii) not employed
by any State agency or center for independent living.

(5)Chairperson

(A)In general

Except as provided in subparagraph
(B), the Council shall select a chairperson from among the voting membership
of the Council.

(B)Designation
by governor

In States in which the
Governor does not have veto power pursuant to State law, the Governor shall
designate a voting member of the Council to serve as the chairperson of the
Council or shall require the Council to so designate such a voting member.

(6) Terms of appointment

(A) Length of term

Each member of the Council
shall serve for a term of 3 years, except that-

(i) a member appointed
to fill a vacancy occurring prior to the expiration of the term for which a
predecessor was appointed, shall be appointed for the remainder of such term;
and

(ii) the terms of
service of the members initially appointed shall be (as specified by the Governor)
for such fewer number of years as will provide for the expiration of terms on
a staggered basis.

(B) Number of terms

No member of the Council
may serve more than two consecutive full terms.

(7) Vacancies

(A) In general

Except as provided in subparagraph
(B), any vacancy occurring in the membership of the Council shall be filled
in the same manner as the original appointment. The vacancy shall not affect
the power of the remaining members to execute the duties of the Council.

(B) Delegation

The Governor may delegate
the authority to fill such a vacancy to the remaining voting members of the
Council after making the original appointment.

(c) Duties

The Council shall-

(1) jointly develop
and sign (in conjunction with the designated State unit) the State plan required
in section 704;

(2) monitor, review,
and evaluate the implementation of the State plan;

(3) coordinate activities
with the State Rehabilitation Council established under section 105, if the
State has such a Council, or the commission described in section 101(a)(21)(A),
if the State has such a commission, and councils that address the needs of specific
disability populations and issues under other Federal law;

(4) ensure that
all regularly scheduled meetings of the Statewide Independent Living Council
are open to the public and sufficient advance notice is provided; and

(5) submit to the
Commissioner such periodic reports as the Commissioner may reasonably request,
and keep such records, and afford such access to such records, as the Commissioner
finds necessary to verify such reports.

(d) Hearings and Forums

The Council is authorized
to hold such hearings and forums as the Council may determine to be necessary
to carry out the duties of the Council.

(e) Plan

(1) In general

The Council shall prepare,
in conjunction with the designated State unit, a plan for the provision of such
resources, including such staff and personnel, as may be necessary and sufficient
to carry out the functions of the Council under this section, with funds made
available under this chapter, and under section 110 (consistent with section
101(a)(18)), and from other public and private sources. The resource plan shall,
to the maximum extent possible, rely on the use of resources in existence during
the period of implementation of the plan.

(2) Supervision
and evaluation

Each Council shall, consistent
with State law, supervise and evaluate such staff and other personnel as may
be necessary to carry out the functions of the Council under this section.

(3) Conflict
of interest

While assisting the Council
in carrying out its duties, staff and other personnel shall not be assigned
duties by the designated State agency or any other agency or office of the State,
that would create a conflict of interest.

(f) Compensation
and Expenses

The Council may use such
resources to reimburse members of the Council for reasonable and necessary expenses
of attending Council meetings and performing Council duties (including child
care and personal assistance services), and to pay compensation to a member
of the Council, if such member is not employed or must forfeit wages from other
employment, for each day the member is engaged in performing Council duties.

Sec. 706. Responsibilities
of the Commissioner

(a) Approval
of State Plans

(1) In general

The Commissioner shall
approve any State plan submitted under section 704 that the Commissioner determines
meets the requirements of section 704, and shall disapprove any such plan that
does not meet such requirements, as soon as practicable after receiving the
plan. Prior to such disapproval, the Commissioner shall notify the State of
the intention to disapprove the plan, and shall afford such State reasonable
notice and opportunity for a hearing.

(2) Procedures

(A) In general

Except as provided in subparagraph (B), the provisions of subsections (c) and
(d) of section 107 shall apply to any State plan submitted to the Commissioner
under section 704.

(B) Application

For purposes of the application
described in subparagraph (A), all references in such provisions-

(i) to the Secretary
shall be deemed to be references to the Commissioner; and

(ii) to section
101 shall be deemed to be references to section 704.`(b) Indicators:
Not later than October 1, 1993, the Commissioner shall develop and publish in
the Federal Register indicators of minimum compliance consistent with the standards
set forth in section 725.

(c) Onsite Compliance
Reviews

(1) Reviews

The Commissioner shall
annually conduct onsite compliance reviews of at least 15 percent of the centers
for independent living that receive funds under section 722 and shall periodically
conduct such a review of each such center. The Commissioner shall annually conduct
onsite compliance reviews of at least one-third of the designated State units
that receive funding under section 723, and, to the extent necessary to determine
the compliance of such a State unit with subsections (f) and (g) of section
723, centers that receive funding under section 723 in such State. The Commissioner
shall select the centers and State units described in this paragraph for review
on a random basis.

(2) Qualifications
of employees conducting reviews

The Commissioner shall-

(A) to the maximum
extent practicable, carry out such a review by using employees of the Department
who are knowledgeable about the provision of independent living services;

(B) ensure that
the employee of the Department with responsibility for supervising such a review
shall have such knowledge; and

(C) ensure that
at least one member of a team conducting such a review shall be an individual
who-

(i) is not a government
employee; and

(ii) has experience in the operation of centers for independent living.

(d) Reports

The Commissioner shall
include, in the annual report required under section 13, information on the
extent to which centers for independent living receiving funds under part C
have complied with the standards and assurances set forth in section 725. The
Commissioner may identify individual centers for independent living in the analysis.
The Commissioner shall report the results of onsite compliance reviews, identifying
individual centers for independent living and other recipients of assistance
under this chapter.

Part B-Independent Living Services

Sec. 711. Allotments

(a) In General

(1) States

(A) Population
basis

Except as provided in subparagraphs
(B) and (C), from sums appropriated for each fiscal year to carry out this part,
the Commissioner shall make an allotment to each State whose State plan has
been approved under section 706 of an amount bearing the same ratio to such
sums as the population of the State bears to the population of all States.

(B) Maintenance
of 1992 amounts

Subject to the availability
of appropriations to carry out this part, the amount of any allotment made under
subparagraph (A) to a State for a fiscal year shall not be less than the amount
of an allotment made to the State for fiscal year 1992 under part A of this
title, as in effect on the day before the date of enactment of the Rehabilitation
Act Amendments of 1992.

(C) Minimums

Subject to the availability of appropriations to carry out this part, and except
as provided in subparagraph (B), the allotment to any State under subparagraph
(A) shall be not less than $275,000 or one-third of one percent of the sums
made available for the fiscal year for which the allotment is made, whichever
is greater, and the allotment of any State under this section for any fiscal
year that is less than $275,000 or one-third of one percent of such sums shall
be increased to the greater of the two amounts.

(2) Certain territories

(A) In general

For the purposes of paragraph
(1)(C), Guam, American Samoa, the United States Virgin Islands, and the Commonwealth
of the Northern Mariana Islands shall not be considered to be States.

(B) Allotment

Each jurisdiction described
in subparagraph (A) shall be allotted under paragraph (1)(A) not less than one-eighth
of one percent of the amounts made available for purposes of this part for the
fiscal year for which the allotment is made.

(3) Adjustment
for inflation

For any fiscal year, beginning
in fiscal year 1999, in which the total amount appropriated to carry out this
part exceeds the total amount appropriated to carry out this part for the preceding
fiscal year, the Commissioner shall increase the minimum allotment under paragraph
(1)(C) by a percentage that shall not exceed the percentage increase in the
total amount appropriated to carry out this part between the preceding fiscal
year and the fiscal year involved.

(b) Proportional
Reduction

To provide allotments to
States in accordance with subsection (a)(1)(B), to provide minimum allotments
to States (as increased under subsection (a)(3)) under subsection (a)(1)(C),
or to provide minimum allotments to States under subsection (a)(2)(B), the Commissioner
shall proportionately reduce the allotments of the remaining States under subsection
(a)(1)(A), with such adjustments as may be necessary to prevent the allotment
of any such remaining State from being reduced to less than the amount required
by subsection (a)(1)(B).

(c) Reallotment

Whenever the Commissioner
determines that any amount of an allotment to a State for any fiscal year will
not be expended by such State in carrying out the provisions of this part, the
Commissioner shall make such amount available for carrying out the provisions
of this part to one or more of the States that the Commissioner determines will
be able to use additional amounts during such year for carrying out such provisions.
Any amount made available to a State for any fiscal year pursuant to the preceding
sentence shall, for the purposes of this section, be regarded as an increase
in the allotment of the State (as determined under the preceding provisions
of this section) for such year.

Sec. 712. Payments to States from Allotments

(a) Payments

From the allotment of each
State for a fiscal year under section 711, the State shall be paid the Federal
share of the expenditures incurred during such year under its State plan approved
under section 706. Such payments may be made (after necessary adjustments on
account of previously made overpayments or underpayments) in advance or by way
of reimbursement, and in such installments and on such conditions as the Commissioner
may determine.

(b) Federal
Share

(1) In general

The Federal share with
respect to any State for any fiscal year shall be 90 percent of the expenditures
incurred by the State during such year under its State plan approved under section
706.

(2) Non-federal
share

The non-Federal share of
the cost of any project that receives assistance through an allotment under
this part may be provided in cash or in kind, fairly evaluated, including plant,
equipment, or services.

Sec. 713. Authorized Uses of Funds

The State may use funds
received under this part to provide the resources described in section 705(e),
relating to the Statewide Independent Living Council, and may use funds received
under this part-

(1) to provide independent
living services to individuals with significant disabilities;

(2) to demonstrate
ways to expand and improve independent living services;

(3) to support the
operation of centers for independent living that are in compliance with the
standards and assurances set forth in subsections (b) and (c) of section 725;

(4) to support activities
to increase the capacities of public or nonprofit agencies and organizations
and other entities to develop comprehensive approaches or systems for providing
independent living services;

(5) to conduct studies
and analyses, gather information, develop model policies and procedures, and
present information, approaches, strategies, findings, conclusions, and recommendations
to Federal, State, and local policymakers in order to enhance independent living
services for individuals with disabilities;

(6) to train individuals
with disabilities and individuals providing services to individuals with disabilities
and other persons regarding the independent living philosophy; and

(7) to provide outreach
to populations that are unserved or underserved by programs under this title,
including minority groups and urban and rural populations.

Sec. 714. Authorization of Appropriations

There are authorized to
be appropriated to carry out this part such sums as may be necessary for each
of the fiscal years 1999 through 2003.

Part C-Centers for Independent Living

Sec. 721. Program Authorization

(a)In General

From the funds appropriated
for fiscal year 1999 and for each subsequent fiscal year to carry out this part,
the Commissioner shall allot such sums as may be necessary to States and other
entities in accordance with subsections (b) through (d).

(b)Training

(1)Grants; contracts;
other arrangements

For any fiscal year in
which the funds appropriated to carry out this part exceed the funds appropriated
to carry out this part for fiscal year 1993, the Commissioner shall first reserve
from such excess, to provide training and technical assistance to eligible agencies,
centers for independent living, and Statewide Independent Living Councils for
such fiscal year, not less than 1.8 percent, and not more than 2 percent, of
the funds appropriated to carry out this part for the fiscal year involved.

(2)Allocation

From the funds reserved
under paragraph (1), the Commissioner shall make grants to, and enter into contracts
and other arrangements with, entities that have experience in the operation
of centers for independent living to provide such training and technical assistance
with respect to planning, developing, conducting, administering, and evaluating
centers for independent living.

(3)Funding priorities

The Commissioner shall
conduct a survey of Statewide Independent Living Councils and centers for independent
living regarding training and technical assistance needs in order to determine
funding priorities for such grants, contracts, and other arrangements.

(4)Review

To be eligible to receive
a grant or enter into a contract or other arrangement under this subsection,
such an entity shall submit an application to the Commissioner at such time,
in such manner, and containing a proposal to provide such training and technical
assistance, and containing such additional information as the Commissioner may
require. The Commissioner shall provide for peer review of grant applications
by panels that include persons who are not government employees and who have
experience in the operation of centers for independent living.

(5)Prohibition
on combined funds

No funds reserved by the
Commissioner under this subsection may be combined with funds appropriated under
any other Act or part of this Act if the purpose of combining funds is to make
a single discretionary grant or a single discretionary payment, unless such
funds appropriated under this chapter are separately identified in such grant
or payment and are used for the purposes of this chapter.

(c)In General

(1)States

(A)Population
basis

After the reservation required
by subsection (b) has been made, and except as provided in subparagraphs (B)
and (C), from the remainder of the amounts appropriated for each such fiscal
year to carry out this part, the Commissioner shall make an allotment to each
State whose State plan has been approved under section 706 of an amount bearing
the same ratio to such remainder as the population of the State bears to the
population of all States.

(B)Maintenance
of 1992 amounts

Subject to the availability
of appropriations to carry out this part, the amount of any allotment made under
subparagraph (A) to a State for a fiscal year shall not be less than the amount
of financial assistance received by centers for independent living in the State
for fiscal year 1992 under part B of this title, as in effect on the day before
the date of enactment of the Rehabilitation Act Amendments of 1992.

(C)Minimums

Subject to the availability of appropriations to carry out this part and except
as provided in subparagraph (B), for a fiscal year in which the amounts appropriated
to carry out this part exceed the amounts appropriated for fiscal year 1992
to carry out part B of this title, as in effect on the day before the date of
enactment of the Rehabilitation Act Amendments of 1992-

(i) if such excess
is not less than $8,000,000, the allotment to any State under subparagraph (A)
shall be not less than $450,000 or one-third of one percent of the sums made
available for the fiscal year for which the allotment is made, whichever is
greater, and the allotment of any State under this section for any fiscal year
that is less than $450,000 or one-third of one percent of such sums shall be
increased to the greater of the two amounts;

(ii) if such excess
is not less than $4,000,000 and is less than $8,000,000, the allotment to any
State under subparagraph (A) shall be not less than $400,000 or one-third of
one percent of the sums made available for the fiscal year for which the allotment
is made, whichever is greater, and the allotment of any State under this section
for any fiscal year that is less than $400,000 or one-third of one percent of
such sums shall be increased to the greater of the two amounts; and

(iii) if such excess
is less than $4,000,000, the allotment to any State under subparagraph (A) shall
approach, as nearly as possible, the greater of the two amounts described in
clause (ii).

(2)Certain territories

(A)In general

For the purposes of paragraph
(1)(C), Guam, American Samoa, the United States Virgin Islands, and the Commonwealth
of the Northern Mariana Islands shall not be considered to be States.

(B)Allotment

Each jurisdiction described
in subparagraph (A) shall be allotted under paragraph (1)(A) not less than one-eighth
of one percent of the remainder for the fiscal year for which the allotment
is made.

(3)Adjustment
for inflation

For any fiscal year, beginning
in fiscal year 1999, in which the total amount appropriated to carry out this
part exceeds the total amount appropriated to carry out this part for the preceding
fiscal year, the Commissioner shall increase the minimum allotment under paragraph
(1)(C) by a percentage that shall not exceed the percentage increase in the
total amount appropriated to carry out this part between the preceding fiscal
year and the fiscal year involved.

(4)Proportional
reduction

To provide allotments to
States in accordance with paragraph (1)(B), to provide minimum allotments to
States (as increased under paragraph (3)) under paragraph (1)(C), or to provide
minimum allotments to States under paragraph (2)(B), the Commissioner shall
proportionately reduce the allotments of the remaining States under paragraph
(1)(A), with such adjustments as may be necessary to prevent the allotment of
any such remaining State from being reduced to less than the amount required
by paragraph (1)(B).

(d)Reallotment

Whenever the Commissioner
determines that any amount of an allotment to a State for any fiscal year will
not be expended by such State for carrying out the provisions of this part,
the Commissioner shall make such amount available for carrying out the provisions
of this part to one or more of the States that the Commissioner determines will
be able to use additional amounts during such year for carrying out such provisions.
Any amount made available to a State for any fiscal year pursuant to the preceding
sentence shall, for the purposes of this section, be regarded as an increase
in the allotment of the State (as determined under the preceding provisions
of this section) for such year.

Sec. 722. Grants to Centers
for Independent Living in States in Which Federal Funding Exceeds State Funding

(a) Establishment

(1)In general

Unless the director of
a designated State unit awards grants under section 723 to eligible agencies
in a State for a fiscal year, the Commissioner shall award grants under this
section to such eligible agencies for such fiscal year from the amount of funds
allotted to the State under subsection (c) or (d) of section 721 for such year.

(2)Grants

The Commissioner shall award such grants, from the amount of funds so allotted,
to such eligible agencies for the planning, conduct, administration, and evaluation
of centers for independent living that comply with the standards and assurances
set forth in section 725.

(b)Eligible
Agencies

In any State in which the Commissioner has approved the State plan required
by section 704, the Commissioner may make a grant under this section to any
eligible agency that-

(1) has the power
and authority to carry out the purpose of this part and perform the functions
set forth in section 725 within a community and to receive and administer funds
under this part, funds and contributions from private or public sources that
may be used in support of a center for independent living, and funds from other
public and private programs;

(2) is determined
by the Commissioner to be able to plan, conduct, administer, and evaluate a
center for independent living consistent with the standards and assurances set
forth in section 725; and

(3) submits an application
to the Commissioner at such time, in such manner, and containing such information
as the Commissioner may require.

(c)Existing
Eligible Agencies

In the administration of
the provisions of this section, the Commissioner shall award grants to any eligible
agency that has been awarded a grant under this part by September 30, 1997,
unless the Commissioner makes a finding that the agency involved fails to meet
program and fiscal standards and assurances set forth in section 725.

(d)New Centers
for Independent Living

(1)In general

If there is no center for
independent living serving a region of the State or a region is underserved,
and the increase in the allotment of the State is sufficient to support an additional
center for independent living in the State, the Commissioner may award a grant
under this section to the most qualified applicant proposing to serve such region,
consistent with the provisions in the State plan setting forth the design of
the State for establishing a statewide network of centers for independent living.

(2)Selection

In selecting from among applicants for a grant under this section for a new
center for independent living, the Commissioner-

(A) shall consider
comments regarding the application, if any, by the Statewide Independent Living
Council in the State in which the applicant is located;

(B) shall consider the ability of each such applicant to operate a center
for independent living based on-

(i) evidence of
the need for such a center;

(ii) any past performance
of such applicant in providing services comparable to independent living services;

(iii) the plan for
satisfying or demonstrated success in satisfying the standards and the assurances
set forth in section 725;

(iv) the quality
of key personnel and the involvement of individuals with significant disabilities;

(v) budgets and
cost-effectiveness;

(vi) an evaluation
plan; and

(vii) the ability
of such applicant to carry out the plans; and

(C) shall give priority
to applications from applicants proposing to serve geographic areas within each
State that are currently unserved or underserved by independent living programs,
consistent with the provisions of the State plan submitted under section 704
regarding establishment of a statewide network of centers for independent living.

(3)Current centers

Notwithstanding paragraphs
(1) and (2), a center for independent living that receives assistance under
part B for a fiscal year shall be eligible for a grant for the subsequent fiscal
year under this subsection.

(e)Order of
Priorities

The Commissioner shall
be guided by the following order of priorities in allocating funds among centers
for independent living within a State, to the extent funds are available:

(1) The Commissioner
shall support existing centers for independent living, as described in subsection
(c), that comply with the standards and assurances set forth in section 725,
at the level of funding for the previous year.

(2) The Commissioner
shall provide for a cost-of-living increase for such existing centers for independent
living.

(3) The Commissioner
shall fund new centers for independent living, as described in subsection (d),
that comply with the standards and assurances set forth in section 725.

(f)Nonresidential
Agencies

A center that provides
or manages residential housing after October 1, 1994, shall not be considered
to be an eligible agency under this section.

(g)Review

(1)In general

The Commissioner shall
periodically review each center receiving funds under this section to determine
whether such center is in compliance with the standards and assurances set forth
in section 725. If the Commissioner determines that any center receiving funds
under this section is not in compliance with the standards and assurances set
forth in section 725, the Commissioner shall immediately notify such center
that it is out of compliance.

(2)Enforcement

The Commissioner shall
terminate all funds under this section to such center 90 days after the date
of such notification unless the center submits a plan to achieve compliance
within 90 days of such notification and such plan is approved by the Commissioner.

Sec. 723. Grants to Centers
for Independent Living in States in Which State Funding Equals or Exceeds Federal
Funding

(a)Establishment

(1)In general

(A)Initial year

(i)Determination

The director of a designated State unit, as provided in paragraph (2), or the
Commissioner, as provided in paragraph (3), shall award grants under this section
for an initial fiscal year if the Commissioner determines that the amount of
State funds that were earmarked by a State for a preceding fiscal year to support
the general operation of centers for independent living meeting the requirements
of this part equaled or exceeded the amount of funds allotted to the State under
subsection (c) or (d) of section 721 for such year.

(ii)Grants

The director or the Commissioner,
as appropriate, shall award such grants, from the amount of funds so allotted
for the initial fiscal year, to eligible agencies in the State for the planning,
conduct, administration, and evaluation of centers for independent living that
comply with the standards and assurances set forth in section 725.

(iii)Regulation

The Commissioner shall
by regulation specify the preceding fiscal year with respect to which the Commissioner
will make the determinations described in clause (i) and subparagraph (B), making
such adjustments as may be necessary to accommodate State funding cycles such
as 2-year funding cycles or State fiscal years that do not coincide with the
Federal fiscal year.

(B)Subsequent
years

For each year subsequent
to the initial fiscal year described in subparagraph (A), the director of the
designated State unit shall continue to have the authority to award such grants
under this section if the Commissioner determines that the State continues to
earmark the amount of State funds described in subparagraph (A)(i). If the State
does not continue to earmark such an amount for a fiscal year, the State shall
be ineligible to make grants under this section after a final year following
such fiscal year, as defined in accordance with regulations established by the
Commissioner, and for each subsequent fiscal year.

(2)Grants by
designated state units

In order for the designated
State unit to be eligible to award the grants described in paragraph (1) and
carry out this section for a fiscal year with respect to a State, the designated
State agency shall submit an application to the Commissioner at such time, and
in such manner as the Commissioner may require, including information about
the amount of State funds described in paragraph (1) for the preceding fiscal
year. If the Commissioner makes a determination described in subparagraph (A)(i)
or (B), as appropriate, of paragraph (1), the Commissioner shall approve the
application and designate the director of the designated State unit to award
the grant and carry out this section.

(3)Grants by
commissioner

If the designated State agency of a State described in paragraph (1) does not
submit and obtain approval of an application under paragraph (2), the Commissioner
shall award the grant described in paragraph (1) to eligible agencies in the
State in accordance with section 722.

(b)Eligible
Agencies

In any State in which the
Commissioner has approved the State plan required by section 704, the director
of the designated State unit may award a grant under this section to any eligible
agency that-

(1) has the power
and authority to carry out the purpose of this part and perform the functions
set forth in section 725 within a community and to receive and administer funds
under this part, funds and contributions from private or public sources that
may be used in support of a center for independent living, and funds from other
public and private programs;

(2) is determined
by the director to be able to plan, conduct, administer, and evaluate a center
for independent living, consistent with the standards and assurances set forth
in section 725; and

(3) submits an application
to the director at such time, in such manner, and containing such information
as the head of the designated State unit may require.

(c)Existing
Eligible Agencies

In the administration of
the provisions of this section, the director of the designated State unit shall
award grants under this section to any eligible agency that has been awarded
a grant under this part by September 30, 1997, unless the director makes a finding
that the agency involved fails to comply with the standards and assurances set
forth in section 725.

(d)New Centers
for Independent Living

(1)In general

If there is no center for
independent living serving a region of the State or the region is unserved or
underserved, and the increase in the allotment of the State is sufficient to
support an additional center for independent living in the State, the director
of the designated State unit may award a grant under this section from among
eligible agencies, consistent with the provisions of the State plan under section
704 setting forth the design of the State for establishing a statewide network
of centers for independent living.

(2)Selection

In selecting from among
eligible agencies in awarding a grant under this part for a new center for independent
living-

(A) the director
of the designated State unit and the chairperson of, or other individual designated
by, the Statewide Independent Living Council acting on behalf of and at the
direction of the Council, shall jointly appoint a peer review committee that
shall rank applications in accordance with the standards and assurances set
forth in section 725 and criteria jointly established by such director and such
chairperson or individual;

(B) the peer review
committee shall consider the ability of each such applicant to operate a center
for independent living, and shall recommend an applicant to receive a grant
under this section, based on-

(i) evidence of
the need for a center for independent living, consistent with the State plan;

(ii) any past performance
of such applicant in providing services comparable to independent living services;

(iii) the plan for
complying with, or demonstrated success in complying with, the standards and
the assurances set forth in section 725;

(iv) the quality
of key personnel of the applicant and the involvement of individuals with significant
disabilities by the applicant;

(v) the budgets
and cost-effectiveness of the applicant;

(vi) the evaluation
plan of the applicant; and

(vii) the ability
of such applicant to carry out the plans; and

(C) the director
of the designated State unit shall award the grant on the basis of the recommendations
of the peer review committee if the actions of the committee are consistent
with Federal and State law.

(3)Current centers

Notwithstanding paragraphs
(1) and (2), a center for independent living that receives assistance under
part B for a fiscal year shall be eligible for a grant for the subsequent fiscal
year under this subsection.

(e)Order of
Priorities

Unless the director of
the designated State unit and the chairperson of the Council or other individual
designated by the Council acting on behalf of and at the direction of the Council
jointly agree on another order of priority, the director shall be guided by
the following order of priorities in allocating funds among centers for independent
living within a State, to the extent funds are available:

(1) The director
of the designated State unit shall support existing centers for independent
living, as described in subsection (c), that comply with the standards and assurances
set forth in section 725, at the level of funding for the previous year.

(2) The director
of the designated State unit shall provide for a cost-of-living increase for
such existing centers for independent living.

(3) The director
of the designated State unit shall fund new centers for independent living,
as described in subsection (d), that comply with the standards and assurances
set forth in section 725.

(f)Nonresidential
Agencies

A center that provides
or manages residential housing after October 1, 1994, shall not be considered
to be an eligible agency under this section.

(g)Review

(1)In general

The director of the designated
State unit shall periodically review each center receiving funds under this
section to determine whether such center is in compliance with the standards
and assurances set forth in section 725. If the director of the designated State
unit determines that any center receiving funds under this section is not in
compliance with the standards and assurances set forth in section 725, the director
of the designated State unit shall immediately notify such center that it is
out of compliance.

(2)Enforcement

The director of the designated
State unit shall terminate all funds under this section to such center 90 days
after-

(A) the date of
such notification; or

(B) in the case
of a center that requests an appeal under subsection (i), the date of any final
decision under subsection (i), unless the center submits a plan to achieve compliance
within 90 days and such plan is approved by the director, or if appealed, by
the Commissioner.

(h)Onsite Compliance
Review

The director of the designated
State unit shall annually conduct onsite compliance reviews of at least 15 percent
of the centers for independent living that receive funding under this section
in the State. Each team that conducts onsite compliance review of centers for
independent living shall include at least one person who is not an employee
of the designated State agency, who has experience in the operation of centers
for independent living, and who is jointly selected by the director of the designated
State unit and the chairperson of or other individual designated by the Council
acting on behalf of and at the direction of the Council. A copy of this review
shall be provided to the Commissioner.

(i)Adverse
Actions

If the director of the
designated State unit proposes to take a significant adverse action against
a center for independent living, the center may seek mediation and conciliation
to be provided by an individual or individuals who are free of conflicts of
interest identified by the chairperson of or other individual designated by
the Council. If the issue is not resolved through the mediation and conciliation,
the center may appeal the proposed adverse action to the Commissioner for a
final decision.

Sec. 724. Centers Operated
by State Agencies

A State that receives assistance
for fiscal year 1993 with respect to a center in accordance with subsection
(a) of this section (as in effect on the day before the date of enactment of
the Rehabilitation Act Amendments of 1998) may continue to receive assistance
under this part for fiscal year 1994 or a succeeding fiscal year if, for such
fiscal year-

(1) no nonprofit
private agency-

(A) submits an acceptable
application to operate a center for independent living for the fiscal year before
a date specified by the Commissioner; and

(B) obtains approval
of the application under section 722 or 723; or

(2) after funding
all applications so submitted and approved, the Commissioner determines that
funds remain available to provide such assistance.

Sec. 725. Standards and
Assurances for Centers for Independent Living

(a)In General

Each center for independent
living that receives assistance under this part shall comply with the standards
set out in subsection (b) and provide and comply with the assurances set out
in subsection (c) in order to ensure that all programs and activities under
this part are planned, conducted, administered, and evaluated in a manner consistent
with the purposes of this chapter and the objective of providing assistance
effectively and efficiently.

(b)Standards

(1)Philosophy

The center shall promote
and practice the independent living philosophy of-

(A) consumer control
of the center regarding decisionmaking, service delivery, management, and establishment
of the policy and direction of the center;

(B) self-help and
self-advocacy;

(C) development
of peer relationships and peer role models; and

(D) equal access
of individuals with significant disabilities to society and to all services,
programs, activities, resources, and facilities, whether public or private and
regardless of the funding source.

(2)Provision
of services

The center shall provide
services to individuals with a range of significant disabilities. The center
shall provide services on a cross-disability basis (for individuals with all
different types of significant disabilities, including individuals with significant
disabilities who are members of populations that are unserved or underserved
by programs under this title). Eligibility for services at any center for independent
living shall be determined by the center, and shall not be based on the presence
of any one or more specific significant disabilities.

(3)Independent
living goals

The center shall facilitate
the development and achievement of independent living goals selected by individuals
with significant disabilities who seek such assistance by the center.

(4)Community
options

The center shall work to
increase the availability and improve the quality of community options for independent
living in order to facilitate the development and achievement of independent
living goals by individuals with significant disabilities.

(5)Independent
living core services

The center shall provide
independent living core services and, as appropriate, a combination of any other
independent living services.

(6)Activities
to increase community capacity

The center shall conduct
activities to increase the capacity of communities within the service area of
the center to meet the needs of individuals with significant disabilities.

(7)Resource
development activities

The center shall conduct
resource development activities to obtain funding from sources other than this
chapter.

(c)Assurances

The eligible agency shall
provide at such time and in such manner as the Commissioner may require, such
satisfactory assurances as the Commissioner may require, including satisfactory
assurances that-

(1) the applicant
is an eligible agency;

(2) the center will
be designed and operated within local communities by individuals with disabilities,
including an assurance that the center will have a Board that is the principal
governing body of the center and a majority of which shall be composed of individuals
with significant disabilities;

(3) the applicant
will comply with the standards set forth in subsection (b);

(4) the applicant
will establish clear priorities through annual and 3-year program and financial
planning objectives for the center, including overall goals or a mission for
the center, a work plan for achieving the goals or mission, specific objectives,
service priorities, and types of services to be provided, and a description
that shall demonstrate how the proposed activities of the applicant are consistent
with the most recent 3-year State plan under section 704;

(5) the applicant
will use sound organizational and personnel assignment practices, including
taking affirmative action to employ and advance in employment qualified individuals
with significant disabilities on the same terms and conditions required with
respect to the employment of individuals with disabilities under section 503;

(6) the applicant
will ensure that the majority of the staff, and individuals in decisionmaking
positions, of the applicant are individuals with disabilities;

(7) the applicant
will practice sound fiscal management, including making arrangements for an
annual independent fiscal audit, notwithstanding section 7502(a)(2)(A) of title
31, United States Code;

(8) the applicant
will conduct annual self-evaluations, prepare an annual report, and maintain
records adequate to measure performance with respect to the standards, containing
information regarding, at a minimum-

(A) the extent to
which the center is in compliance with the standards;

(B) the number and
types of individuals with significant disabilities receiving services through
the center;

(C) the types of
services provided through the center and the number of individuals with significant
disabilities receiving each type of service;

(D) the sources
and amounts of funding for the operation of the center;

(E) the number of
individuals with significant disabilities who are employed by, and the number
who are in management and decisionmaking positions in, the center; and

(F) a comparison,
when appropriate, of the activities of the center in prior years with the activities
of the center in the most recent year;

(9) individuals
with significant disabilities who are seeking or receiving services at the center
will be notified by the center of the existence of, the availability of, and
how to contact, the client assistance program;

(10) aggressive
outreach regarding services provided through the center will be conducted in
an effort to reach populations of individuals with significant disabilities
that are unserved or underserved by programs under this title, especially minority
groups and urban and rural populations;

(11) staff at centers
for independent living will receive training on how to serve such unserved and
underserved populations, including minority groups and urban and rural populations;

(12) the center
will submit to the Statewide Independent Living Council a copy of its approved
grant application and the annual report required under paragraph (8);

(13) the center
will prepare and submit a report to the designated State unit or the Commissioner,
as the case may be, at the end of each fiscal year that contains the information
described in paragraph (8) and information regarding the extent to which the
center is in compliance with the standards set forth in subsection (b); and

(14) an independent
living plan described in section 704(e) will be developed unless the individual
who would receive services under the plan signs a waiver stating that such a
plan is unnecessary.

Sec. 726. Definitions

As used in this part, the
term "eligible agency" means a consumer-controlled, community-based,
cross-disability, nonresidential private nonprofit agency.

Sec. 727. Authorization
of Appropriations

There are authorized to
be appropriated to carry out this part such sums as may be necessary for each
of the fiscal years 1999 through 2003.

Chapter 2-Independent
Living Services

for Older Individuals Who
are Blind

Sec. 751. Definition

For purposes of this chapter,
the term "older individual who is blind" means an individual age 55
or older whose significant visual impairment makes competitive employment extremely
difficult to attain but for whom independent living goals are feasible.

Sec. 752. Program of Grants

(a)In General

(1)Authority
for grants

Subject to subsections
(b) and (c), the Commissioner may make grants to States for the purpose of providing
the services described in subsection (d) to older individuals who are blind.

(2)Designated
state agency

The Commissioner may not
make a grant under subsection (a) unless the State involved agrees that the
grant will be administered solely by the agency described in section 101(a)(2)(A)(i).

(b)Contingent
Competitive Grants

Beginning with fiscal year
1993, in the case of any fiscal year for which the amount appropriated under
section 753 is less than $13,000,000, grants made under subsection (a) shall
be-

(1) discretionary
grants made on a competitive basis to States; or

(2) grants made
on a noncompetitive basis to pay for the continuation costs of activities for
which a grant was awarded-

(A) under this chapter;
or

(B) under part C,
as in effect on the day before the date of enactment of the Rehabilitation Act
Amendments of 1992.

(c)Contingent
Formula Grants

(1)In general

In the case of any fiscal
year for which the amount appropriated under section 753 is equal to or greater
than $13,000,000, grants under subsection (a) shall be made only to States and
shall be made only from allotments under paragraph (2).

(2)Allotments

For grants under subsection
(a) for a fiscal year described in paragraph (1), the Commissioner shall make
an allotment to each State in an amount determined in accordance with subsection
(j), and shall make a grant to the State of the allotment made for the State
if the State submits to the Commissioner an application in accordance with subsection
(i).

(d)Services
Generally

The Commissioner may not make a grant under subsection (a) unless the State
involved agrees that the grant will be expended only for purposes of-

(1) providing independent
living services to older individuals who are blind;

(2) conducting activities
that will improve or expand services for such individuals; and

(3) conducting activities
to help improve public understanding of the problems of such individuals.

(e)Independent
Living Services

Independent living services
for purposes of subsection (d)(1) include-

The Commissioner may not
make a grant under subsection (a) unless the State involved agrees, with respect
to the costs of the program to be carried out by the State pursuant to such
subsection, to make available (directly or through donations from public or
private entities) non-Federal contributions toward such costs in an amount that
is not less than $1 for each $9 of Federal funds provided in the grant.

(2)Determination
of amount contributed

Non-Federal contributions
required in paragraph (1) may be in cash or in kind, fairly evaluated, including
plant, equipment, or services. Amounts provided by the Federal Government, or
services assisted or subsidized to any significant extent by the Federal Government,
may not be included in determining the amount of such non-Federal contributions.

(g)Certain
Expenditures of Grants

A State may expend a grant
under subsection (a) to carry out the purposes specified in subsection (d) through
grants to public and nonprofit private agencies or organizations.

(h)Requirement
Regarding State Plan

The Commissioner may not
make a grant under subsection (a) unless the State involved agrees that, in
carrying out subsection (d)(1), the State will seek to incorporate into the
State plan under section 704 any new methods and approaches relating to independent
living services for older individuals who are blind.

(i)Application
for Grant

(1)In general

The Commissioner may not
make a grant under subsection (a) unless an application for the grant is submitted
to the Commissioner and the application is in such form, is made in such manner,
and contains such agreements, assurances, and information as the Commissioner
determines to be necessary to carry out this section (including agreements,
assurances, and information with respect to any grants under subsection (j)(4)).

(2)Contents

An application for a grant under this section shall contain-

(A) an assurance that the agency described in subsection (a)(2) will
prepare and submit to the Commissioner a report, at the end of each fiscal year,
with respect to each project or program the agency operates or administers under
this section, whether directly or through a grant or contract, which report
shall contain, at a minimum, information on-

(i) the number and
types of older individuals who are blind and are receiving services;

(ii) the types of
services provided and the number of older individuals who are blind and are
receiving each type of service;

(iii) the sources
and amounts of funding for the operation of each project or program;

(iv) the amounts
and percentages of resources committed to each type of service provided;

(v) data on actions
taken to employ, and advance in employment, qualified individuals with significant
disabilities, including older individuals who are blind; and

(vi) a comparison,
if appropriate, of prior year activities with the activities of the most recent
year;

(B) an assurance that the agency will-

(i) provide services
that contribute to the maintenance of, or the increased independence of, older
individuals who are blind; and

(ii) engage in-

(I) capacity-building
activities, including collaboration with other agencies and organizations;

(II) activities
to promote community awareness, involvement, and assistance; and

(III) outreach efforts;
and

(C) an assurance
that the application is consistent with the State plan for providing independent
living services required by section 704.

(j)Amount of
Formula Grant

(1)In general

Subject to the availability of appropriations, the amount of an allotment under
subsection (a) for a State for a fiscal year shall be the greater of-

(A) the amount determined
under paragraph (2); or

(B) the amount determined
under paragraph (3).

(2)Minimum allotment

(A)States

In the case of the several States, the District of Columbia, and the Commonwealth
of Puerto Rico, the amount referred to in subparagraph (A) of paragraph (1)
for a fiscal year is the greater of-

(i) $225,000; or

(ii) an amount equal
to one-third of one percent of the amount appropriated under section 753 for
the fiscal year and available for allotments under subsection (a).

(B)Certain territories

In the case of Guam, American
Samoa, the United States Virgin Islands, and the Commonwealth of the Northern
Mariana Islands, the amount referred to in subparagraph (A) of paragraph (1)
for a fiscal year is $40,000.

(3)Formula

The amount referred to in subparagraph (B) of paragraph (1) for a State for
a fiscal year is the product of-

(A) the amount appropriated
under section 753 and available for allotments under subsection (a); and

(B) a percentage equal to the quotient of-

(i) an amount equal
to the number of individuals residing in the State who are not less than 55
years of age; divided by

(ii) an amount equal
to the number of individuals residing in the United States who are not less
than 55 years of age.

(4)Disposition
of certain amounts

(A)Grants

From the amounts specified
in subparagraph (B), the Commissioner may make grants to States whose population
of older individuals who are blind has a substantial need for the services specified
in subsection (d) relative to the populations in other States of older individuals
who are blind.

(B)Amounts

The amounts referred to in subparagraph (A) are any amounts that are not paid
to States under subsection (a) as a result of-

(i) the failure
of any State to submit an application under subsection (i);

(ii) the failure
of any State to prepare within a reasonable period of time such application
in compliance with such subsection; or

(iii) any State informing the Commissioner that the State does not intend
to expend the full amount of the allotment made for the State under subsection
(a).

(C)Conditions

The Commissioner may not
make a grant under subparagraph (A) unless the State involved agrees that the
grant is subject to the same conditions as grants made under subsection (a).

Sec. 753. Authorization
of Appropriations

There are authorized to be appropriated to carry out this chapter such sums
as may be necessary for each of the fiscal years 1999 through 2003.